If you can believe today's close...then you should feel pretty good about prospect of market going through many "resistance".....
Sentiment were pretty awful @ Wed close......then WMT hit the "doom & gloom index"...the most revered stock in this meltdown.....Guess what the market does...IGNORES all the NEGATIVITY which is being DRUMMED up by professionals ....who are TOO SCARED with this market......I am sure those scared soul will join US when we are MUCH MUCH HIGHER...
Friday's job report will be a NON-EVENT......
We have a very good chance of closing STRONG.....
Canadian $ closed UP 1.15 cent HIGHER against US$ highest close in a long long time...big smile & $$$ for me
BLOG does NOT give buy or sell.
Saleem
4 comments:
Good Morning to all
Tanker action is off the charts again!!! UP EGLE up 7%
Looking for my shares of Monsanto to climb today
I gambled and bought FRE and FNM and tiny amount Citi Bank.
j Carmer says buy VZ--Dunno --do you all.
Good Luck
Hi Madmax,
So many great companies are on fire sale.....they should be bought!!!
Try some ETF....
Finally EGLE showing MOJO today $$$
Saleem
SALEEM
Here is a stock that I got for my IRA
PWE. this seems like good news!
Canadian Energy Trusts Turn The Corner (AAV, BTE, PWE, PVX)
January 06, 2009 | By Eugene Bukoveczky
Last month may have been the season for giving, but for some Canadian royalty trusts, it seemed the right time to drop a proverbial lump of coal into the Christmas stockings of their unit holders by drastically slashing their monthly distributions. The Boards of Advantage Income Trust (NYSE:AAV) and Baytex Energy Trust (NYSE:BTE), both announced that they would be cutting their payouts by 33% and 28% respectively. Analysts are now projecting that most if not all of the remaining royalty trusts will also follow suit, and cut their distributions over the coming year.
Weaker Energy Prices Have Reduced Cash Flow
The decision to reduce payouts is largely motivated by the immediate reality that existing distribution levels are unsustainable given the current level of oil and gas prices. A less immediate, but no less important, reason for cutting payouts has to be the fact that the deadline for the imposition of a 31.5% corporate taxes on trust entities is approaching rapidly. It is now less than two years away and is expected to divert an additional chunk of cash flow away from unit holder’s pockets into the coffers of the Canadian government. (To learn more about this particular type of investment vehicle, be sure to read An Introduction To Canadian Income Trusts.)
Investors Buying Trusts
This drastically diminishes the appeal of these high yielding investments to income investors. But recently, the sector has begun to show signs of life following losses over the last year in the 70-80% range. While the recent uptick in oil prices is the obvious factor behind recent rallies in Advantage and Baytex. U.S. exchange lists Pennwest (NYSE:PWE) and Provident (NYSE:PVX) have also tacked on some sizable gains. Some investors may be seeing a silver lining in the pending payout cuts.
Trusts Put Cash Flow Back Into Exploration
With the fast approaching deadline for the unwinding of the income trust model; the only meaningful option open to the royalty trusts is to transform themselves into traditional oil and gas exploration companies. Cutting distributions increases the amount of cash available to put into exploration drilling and property acquisitions, activities that are considerably less costly to execute, given the drop in energy prices, than they were even six months ago.
It's a riskier proposition for unit holders than just collecting a hefty monthly distribution, but it is ultimately more sustainable, and potentially far more rewarding given the improvements in drilling technology. The recent move by the Alberta government to put some contentious royalty hikes on the backburner has also provided an incremental incentive for the energy trusts to divert more cash flow into drilling now.
The Final Word
Now that they've started the process of morphing into exploration focused companies, the Canadian energy trusts can no longer be viewed as income plays. That promises to make them attractive to a whole new class of less risk-averse investors.
Hi Madmax,
PWE gives good dividend & is popular with trust investors.
Since you have focus on dividend ..so it is a good choice!!!
Saleem
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