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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks -- Ignore unavailable to you. Want to Upgrade?

To: David Culver who wrote (91)	4/20/1998 12:35:00 AM
From: Lorne Larson	Read Replies (1) \| Respond to of 11633

Just found this thread tonight. Hold a number of royalty trusts so find it interesting to hear the views of others. In my opinion this is a great time to buy these things and I'm accumulating to the extent my cash position allows. The commodity based trusts have been hit hard because of the Asian crisis, and the drop in oil prices. Also market sentiment, which can be fickle, has turned against these instruments - they were market darlings in '97. Will throw out two names which I havn't seen mentioned. Manalta (MNL.IR) sells coal to Asia, Europe and South America. Installment receipts were issued at $6.00 in October/97 and now trade at $3.10, with 2nd installment of $4.00 due in October/98. Estimated distribution for '98 is 81 cents for a return of about 26% (11.5% fully paid). Market has obviously panicked because they think the Asian steel industry is collapsing. However Manalta has sold all of its '98 production and the 81 cents is based on the prices they've locked in. Manalta is Canada's largest coal producer and a first rate company. Fort Chicago (FCE.UN) is a limited partnership and holds the largest interest in the Alliance pipeline project (about 26% I believe). This pipeline will start shipping natural gas south in the year 2000, subject to NEB approval, which is expected. The units do not yet pay a dividend, but estimates I've seen expect the units to double by 2000, and thereafter will pay a distribution around 10%. They presently trade at $6.70 fully paid. I like this one because they seem to relatively unknown. However TD Asset Management holds about 7 million units. Regards