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Trusts($TRSTS)


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Trusts($TRSTS) > Forum $TRSTS > Energy stocks...trusts.... today.... View modes: 
  • Energy stocks...trusts.... today....

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    Anyone have a good reason why we are seeing weakness in many of the energy stocks and trusts today given that the gas and oil spot price remain high. Could it be a consolidation or have we reached the peak. THanks in advance.
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  • RE: Energy stocks...trusts.... today....

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    n/g down 3%, oil down 2% + some negative sentiments of last day or 2






    PAY anti-spam
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  • RE: Energy stocks...trusts.... today....

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    "If you haven't bought the market already, you've pretty much missed the whole move," said Michael Guido, director of commodity strategy in New York for bank Societe Generale. "It can't get any colder — all the risk is to the downside. Any kind of breakup in the cold we're getting, and it could easily drop a dollar."

    http://news.yahoo.com/s/ap/20070206/ap_on_bi_ge/oil_prices_33

    With the exception of unforeseen world events I agree with this statement.
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  • RE: Energy stocks...trusts.... today....

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    transcnanada, was he talking oil or NG? Also it may not get any colder, but the cold might last for two or three weeks. Enlim
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  • RE: Energy stocks...trusts.... today....

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    "With the exception of unforeseen world events I agree with this statement."

    Exactly, It isn't going to get any colder and unless the cold holds into mid March, it's more than priced in.

    It's important to pick your battles and this is one I choose to opt out of for now. Energy will be a good investment again eventually. Right now there are better opportunities elsewhere. Energy is one to monitor for later when the next big rally gets underway, IMO.

    Don't discount the future impact of environmental carbon levies either. This potential is just now coming onto the investor's radar screen. I want to have an idea how this will pan out and impacts the margins in the future as well. Our tax mandarins are now seeing the (dispised by the public) oil industry as a giant cash cow ripe for the milking. Be careful and be fully informed. It's probably not a good time to be heavily weighted in energy.
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  • RE: Energy stocks...trusts.... today....

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    "Our tax mandarins are now seeing the (dispised by the public) oil industry as a giant cash cow ripe for the milking. Be careful and be fully informed. It's probably not a good time to be heavily weighted in energy."

    I agree and a big reason not to think that any and all investments in the oil sands are a sure thing. Until we know what costs will be added on for environmental issues it is wise to have a low weighting in oil and gas companies. Gord.
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  • RE: Energy stocks...trusts.... today....

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    "" "Our tax mandarins are now seeing the (dispised by the public) oil industry as a giant cash cow ripe for the milking. Be careful and be fully informed. It's probably not a good time to be heavily weighted in energy."

    I agree and a big reason not to think that any and all investments in the oil sands are a sure thing. Until we know what costs will be added on for environmental issues it is wise to have a low weighting in oil and gas companies. Gord. ""

    Maybe the right track. I have tended to avoid much weight on direct plays on the oil sands, though have some in the peripheral running-around-up-there trusts. I sold SHN today and added to CPG which I view as an exception with good hedges and possibly high commodity prices by 2009, light oil is KISS.

    I do hold some others, having opinions contrary to your responses to Enlim. Though I admit the whole picture doesn't quite hang together for me. It's hard to say seriously and with conviction that there has been a mass illusion, that the shareholder pressure for Telus and BCE and maybe Encana to convert to a trust structure was due to a *false* impression that it would make for a significant tax break!
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  • RE: Energy stocks...trusts.... today....

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    shareholder pressure for Telus and BCE and maybe Encana to convert to a trust structure was due to a *false* impression that it would make for a significant tax break!

    Did pressure from 'shareholders' have anything to do with tax breaks? Wasn't it more a case of a desire to unlock shareholder value that had large investors pushing corps to the trust model?
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  • RE: Energy stocks...trusts.... today....

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    ""shareholder pressure for Telus and BCE and maybe Encana to convert to a trust structure was due to a *false* impression that it would make for a significant tax break!

    Did pressure from 'shareholders' have anything to do with tax breaks? Wasn't it more a case of a desire to unlock shareholder value that had large investors pushing corps to the trust model?""

    Well, yes the little shareholders would want a change if possible to getting a high cash-on-cash yield and maybe wouldn't focus particularly on strange tax issues. Even the concept that a 5.5% dividend if present is already as good as 8% trust income: might tend to be elusive.

    But there does seem to be an illusion that the government is fixing a loophole, that as-is corporations are taxed and income trusts are not. Like the message that your advisor should have had you diversified, and the whole thing surprisingly started to blow up, with mass conversions beginning for large caps, so had to be stopped, and the new proposed tax does that. I think that is mostly false. The new tax is more of just a withholding tax than people think. And if the new tax in itself doesn't have much effect, especially on trusts with tax pools to handle the old trust tax on undistributed taxable income, *and* if the playing field in 2011 will either be levelled or will be favoring corporations over trusts, then *therefore* the trusts were not favored before Halloween! See? A conundrum.

    Appearance is everything, when all is well, then unit values are high, and no problem with loan convenants, and the outlook is good, so unit prices stay high. When there is interference and doubt, unit prices fall and stay down. All is shadowy.

    Not "political" I hope, book.

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