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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (28910)	11/9/2007 12:29:44 PM
From: E_K_S	Read Replies (1) \| Respond to of 78667

ENERPLUS RES FD (NYSE:ERF) is down with HTE today too. finance.yahoo.com They announced their earnings and distribution. biz.yahoo.com Totals look ok. The November distribution is $0.44 US (The CDN$0.42 per unit is equivalent to approximately US$0.44 per unit if converted using a Canadian/US dollar exchange ratio of 0.96.) which is $5.28/year, after 15% Canadian tax is $4.49 or just over 10% net yield at current prices. ====================================================== I believe you can file for the Foreign Tax credit to receive a credit on your Federal tax return. The only thing working today are the health care and drug stocks. Glad to see a little green in this sector. Added a little WM yesterday in the teens but I am expecting a dividend cut and more write downs. I will nibble at a bit more at lower prices. EKS

To: Paul Senior who wrote (28910)	11/10/2007 2:20:21 AM
From: Spekulatius	Read Replies (2) \| Respond to of 78667

HTE - looks like they are distributing 85% of their cash flow. That means there is not enough left to reinvest in their business to keep it sustainable - they are going to issue shares effectively to pay those dividends or take on more debt. Also please not that they only ear 8c/share while distributing 1.14$/share. Trusts are not REIT trust where the depreciation is a phantom expense in the sense that in many cases the buildings appreciate in value over time despite the fact that they can be depreciated on the balance sheet. Oil that is pumped need to be replaced to make revenues in the future and refineries need a lot of Capex (in the order of the depreciation) to keep them competitive.