18 replies to this topic

[PorkLoin]

Holy Dropouts, Batman!

Now yielding over 23%, and I think the dividend is safe at current energy prices. The market is pricing in the worst, and more than the worst.

Doug

[PorkLoin]

Sentient Being,
I have that feeling too, as far as energy companies in general.



We've had 6 weeks of rally and we're up pretty high in the BP and some issues are diverging as you said. Long term I think energy is still a bullish deal, and the events in Canada lately adds a little to that IMO, especially for natural gas. In the shorter-term I certainly think caution is warranted.

Doug

[dasein]

I was looking to buy Thursday, but I then I did some envelope targets, and it looks much lower - SND looks like $4. I dont really understand it, but its the old freight train story... strange to say, I like DAY - anyone else? karen

[dasein]

convert issue, conversion price reset to $C 6 - that is about where the gap is - which could make this even more powerful resistance. think today is close to the end of selling in these names.... DAY just swung to a loss on lower NG prices, probably adding to the pressure on the group. klh

[dasein]

correction conversion price 6.10, not 6 - klh (please just update original post) thx

[PorkLoin]

Karen, Daylight is yielding almost 24% as of Monday's close. Let's say the dividend goes down by the 31.5% -- heck, it'd still be around 16%! The statistics on Peyto's site make Daylight look pretty good. I see things as a real crapshoot now. There may well be more panic selling. There may be a violent rally when the market sees that the Plunge is done. Will energy prices go down more? Will the long-term bull reassert itself? It's a gamble. My worry with Daylight and similar is that they are small trusts, and in the long run I question their financial strength to survive the conversion to corporation status. The merger-mania and high-price-fetching has evaporated in the wake of the Cdn. gov't's announcement. Shareholders aren't likely to do that well if another entity buys such trusts. However, it's not impossible the gov't would relent, all the way or partially, for energy trusts. I don't give it much chance, but should it happen there'd be a rocket ride back up. Roll the dice? Anyway, right now, you buy it, and every month you get back 2% of your money. That's quite something. If no dividend cut, you'd get back almost all your purchase price before the new rules take effect in 2011 -- 2% times 48 months. And you'd still own it. Tomorrow the crop of dividends starts coming in, and I'm going to be looking around for the best buys -- I think the trusts, come what may, are again mighty compelling buys. Doug

[SilentOne]

Hi doug & karen,

Will energy prices go down more? Will the long-term bull reassert itself? It's a gamble.

My worry with Daylight and similar is that they are small trusts, and in the long run I question their financial strength to survive the conversion to corporation status. The merger-mania and high-price-fetching has evaporated in the wake of the Cdn. gov't's announcement. Shareholders aren't likely to do that well if another entity buys such trusts.

My worry is the same. While I am a buyer here, the two key variables are NG and whether many of these trusts survive under the new tax regime. The cost of capital has gone up and the entire energy sector has been turned on its head. I think the value is there though when current strip prices for NG/Oil are brought back to NAV.

I'm long AET.UN, PEY.UN, FEL.UN, and SND.UN. Some of the trusts had nice reversal of their lows yesterday (eg. ERF.UN). I think the downside is limited now in most names as foreign investors have been selling all last week. Demand for these trusts should kick in shortly. What will be the spark? I would imagine one or two trusts announcing buybacks would put in a floor under prices.

cheers,

john

[dasein]

scaled in 1/3 today... klh

[SilentOne]

karen,

I'm long at an average cost of $5.00. I'm planning to hold it for a while. It will pay 4% in distributions through year-end.

cheers,

john

Sound Energy Trust announces cash distribution amount for remainder of year and closing of convertible debentures
Tuesday November 21, 8:56 am ET

TSX: SND.UN
CALGARY, Nov. 21 /CNW/ - SOUND Energy Trust ("SOUND" or the "Trust") is pleased to announce that the cash distribution to be paid on December 15, 2006 to Unitholders of record on November 30 will be $0.10 per Trust Unit. The ex-distribution date is set for November 28. The cash distribution payable on January 15, 2007 to Unitholders of record on December 31, 2006 will also be $0.10 per Trust Unit, with the ex-distribution date on December 29, 2006.

The Trust is also pleased to announce that the $40.0 million offering of 8% convertible unsecured subordinated debentures (the "Debentures") announced on November 10, 2006, closed earlier today. The syndicate of underwriters for this offering was led by TD Securities Inc. and included BMO Nesbitt Burns Inc., Canaccord Capital Corporation, FirstEnergy Capital Corp., National Bank Financial Inc. and Tristone Capital Inc.

The Debentures have a face value of $1,000 per Debenture, a coupon of 8%, a maturity date of December 31, 2011. Interest on the Debentures will be payable semi-annually on June 30 and December 31 each year, commencing on June 30, 2007. The Debentures trade on the Toronto Stock Exchange (the "TSX") under the symbol SND.DB.A.

All of the net proceeds of this offering will be used initially to repay outstanding bank debt and subsequently to fund its capital expenditure program and for general trust purposes.

SOUND is a Calgary-based, open-ended oil and gas income trust whose Trust Units trade on the Toronto Stock Exchange (the "TSX") under the symbol SND.UN. Previously issued debentures of SOUND trade on the TSX under the symbol SND.DB.

www.soundenergytrust.com


ADVISORY: Certain information regarding SOUND Energy Trust including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities law and necessarily involve risks associated with oil and gas exploration, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers and ability to access sufficient capital from internal and external sources; as a consequence, actual results may differ materially from those anticipated in the forward-looking statements.

For further information

Anne-Marie Buchmuller, Manager, Investor Relations, Phone: (403) 218-3664, Toll-free: 1-888-414-4144,

Corrected ex-date for December....

CALGARY, Nov. 21 /CNW/ - SOUND Energy Trust ("SOUND" or the "Trust") is pleased to announce that the cash distribution to be paid on December 15, 2006 to Unitholders of record on November 30 will be $0.10 per Trust Unit. The ex-distribution date is set for November 28. The cash distribution payable on January 15, 2007 to Unitholders of record on December 31, 2006 will also be $0.10 per Trust Unit, with the ex-distribution date on December 27, 2006.