The Natural gas price decline has been rough on the trusts. SHN, THY - ouch, though they've come back a little.
PEY - not an impressive chart, for the last year, but it's down in "good value" range. The trust has a very low cost of production, like $2.25 CDN per barrel of energy equivalent. Hard to beat that. Focused on long-term growth by drilling, rather than paying big bucks for producing assets. Keeps a lot of money for growth; doesn't pay the dividends most others do, but this is my pick for long-term growth, though it's heavy on NG.
AET, NAE, top quality and it shows. CF = low risk, electric power is more stable in pricing than oil & gas. It's original parent company Calpine, painted with the Enron brush (not altogether unfairly), isn't a threat anymore.
Lots of merger activity in the past year. CNE is a merger product, and is looking good. Light oil production is a big plus. HTE also is from a merger, and has been weaker, but pays a big dividend. It's paying out over 90% of distributable case in dividends, though. Oh-oh. Heavy oil production is a negative.
DAY is going to merge, and I'm content to sit and collect the big yield. Same for EEE, though it's merging with Pengrowth, which I view unfavorably overall. Nice move up in EEE, courtesy of Pengrowth paying a high price. EEE shares get an additional special 30 cent dividend. I'm gonna hang in and collect it, then see what the new trust looks like.
NVG quit trading Aug. 14 since it merged with Clear Energy to form Sound Energy Trust. Sound is SND/UN.TO and closed today at $8.42 so no real change yet. I like the new trust, and it's paying 14.3% in dividends.
BPT is a US trust, and has been unbeatable in the long run. Big news about the shutdown of the corroded pipeline pipes, but look at the Chaikin Money Flow - really positive and the MACD looks bottomy.
There's risk to all of these (except maybe CF). If crude oil takes a big hit, so will the trusts. NG has been weak, and we'll see. COT for both have the Commercials short like a big dog right now. Worldwide economic slowdown might occur. There are some potential negatives. If the energy bull market is over, then these are yesterday's winners.
Yet the yields are big, and when we get price spikes down, that's the time to buy. It's been a year for patience, versus the prior four. More later.
Best,
Doug
Edited by PorkLoin, 21 August 2006 - 11:09 PM.