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Trusts($TRSTS)


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Trusts($TRSTS) > Forum $TRSTS > Advice.... View modes: 
  • Advice....

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    Okay. At this time I have some cash here. I am looking at Cos.un. I have no shares of Cos but I have shares of some others including SDT.UN, PWT.un, PD.un. Should I add more to SDT.UN or take a position in Cos.un or perhaps some other good play. Or should I just wait for things to play out and wait until late summer early fall. Thanks in advance don't ya know.
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  • RE: Advice....

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    I would wait. There are better opportunities ahead both short and long term.

    In the next several weeks you may be very glad if you choose to hold that cash for now. We haven't even seen the shoulder season energy sell off yet. I would definitely sit tight and wait for energy at this point. All my opinion only.

    Rushing to buy is often a mistake...Tv
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  • RE: Advice....

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    I hate to give advice, 'cause I usually feel I have no idea what I'm doing!, but just for comparison, I'm more positive about gas than oil. The way I look at it, a new gas year is just about to start. We are already ~250 bcf below this date last year, with a couple of more weeks of more than last year's draws to come (IMO), and another "brutal" cold shot about to or already hitting the NE (although brutal to them is balmy to me). So I just sold COS and bought PGX, based on their recent drilling success and the fact that they just bought into more of the same with their acquisition announced yesterday (which dropped the price further for me). The metrics look good to me, (60k/boe/d?) and it is in the same area I think where they have just demonstrated very good drillin success, so I buy into the story, although I am waiting with baited breath to see what CIBC thinks of the acquisition. I am also holding PEY, FET, and for oil balance BTE and PWT. But I wouldn't argue against cefs that are trading at good discounts either, such as EIT or SEF, which although lagging in price at the moment is doing alright as far as its NAV goes (discount is something like 16%, a cushion if I ever saw one).

    Good luck - take my advice, don't listen to me
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  • RE: Advice....

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    ""Okay. At this time I have some cash here. I am looking at Cos.un. I have no shares of Cos but I have shares of some others including SDT.UN, PWT.un, PD.un. Should I add more to SDT.UN or take a position in Cos.un or perhaps some other good play. Or should I just wait for things to play out and wait until late summer early fall. Thanks in advance don't ya know.""

    I'll chip in a suggestion re COS: that maybe on that short a time frame the oil sands industry seems unwieldy and has issues, and maybe your PWT has enough towards that sort of thing for the longer term. Why not add CPG and VET somewhere here instead of COS, if you want to average down a bit and get variety. CPG is light oil weighted and has yield, VET has foreign energy income yet in the safer areas.

    Maybe a little basket of non-energy trusts too? I hold CWA NFI SRV VOX, rather varied, as to business trusts. FWIW.

    I won't repeat much here about diversified CEFs, just some quick notes: EIT pays 7 cents a month as a seemingly fixed payout, so it's the opposite of dollar cost averaging; gives unstable investment value in a weak market. There are charges deducted. There are sometimes questionable moves that enhance management fees. In a good year, SEF takes a big cut of gains.


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  • RE: Advice....

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    My advice may be less than worthless since I hold no trusts and have not followed them for a couple of months. I did lose a substantial sum when I sold them off but I am so glad I did. My losses would be much greater today if I would of held on.

    You are in the enviable position of holding cash during a correction that may become much worse before it gets better. Even if it is an anomaly and the market returns to bullishness this week, you must ask yourself why should you buy a trust. Putting aside the reasons, trusts have been tarnished. The trust market is infinitely smaller than it was and any upside potential is by decree curtailed.

    Beyond that trusts have the same pressures on them that normal equities do. The shoulder season and political manoeuvring affects the energy trusts. The housing market affects the RIETS and the individual dynamics of business affect all the business trusts. On top of all that is the overriding affect of the global economy and the general emotional state of the markets. So once again, why take on the added baggage that trusts carry?

    I am an income investor as most here know. Trusts supplied that income very nicely for years, but those days are gone I'm afraid and it is time to find other income streams. For me that has been covered call writing. Not only does it distance me from the trust world but it has produced a much better and safer income. I would like to emphasize that options are not for every taste but so far it suits me well.

    I don't mean to rain on anyone's parade, I respect too many on this board to make offhand remarks of this sort without some serious thought. My motive is that I have many friends that have lost large sums because they are holding on to trusts for the income. This loss keeps growing and there is no end in sight. It is not too late to get out and use the remains to build a safer source of income.

    Years ago we trusters were called fools and retards because we invested in a vehicle that was thought by some to be financially unsound. They were wrong, as long as trusts were allowed to work. But now they have proven themselves right, trust have become unsound investments.

    Be a survivor, move on to other investments and other income strategies. Don't make the other part of their insult true is my advice.

    PS, this may have sounded mean but I assure you it is meant with great care and affection for this board and the posters on it. I wish you all the best.

    Dave
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  • RE: Advice....

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    Clambakes.... are you still working with your neighbor on CRIIA to bring some justice to the massacre brought on by Harper and group??

    norski
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  • RE: Advice....norski

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    This is not the place for that discussion, sorry. I will inbox you.
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  • RE: Advice.... "Clambakes"

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    Hi "Dave"

    Great advice..... although I do own a few trusts I maintain that they are trading positions only. I certainly am interested in covered calls especially since your claim to making steady CF's.... Congrats.... I appreciate more info....

    ... as for trusts we seem to have a strong political backing to lower the tax to 10%, extend the start of taxability period to 10years and/or consider other sectors as exempt along with REIT's....???

    ... I hold out hope for RT's myself... anyway, even without these incentives some trusts look attractive to me for trades only. But I agree that selling early was prudent for my account as well...

    .... As for this market correction... WOW.. whiplash or what. I can't believe the liquidity in these markets nor the volume of risk adverse investors... even a trader like myself was left stranded watching many of my favorite names gap up at open to beyond my risk tolerance for the day ... WOW..

    .. my portfolio is positioned for a correction and so is my mental state... but I won't argue with the tape for long....

    all the best
    nobudy
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  • RE: Advice....clambakes

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    could you give details of the income you are able to generate now with your new strategy compared to before ( using % ) so not to divuldge your personnal info.

    ex: i generate 60% of what i used to generate with income trust.


    maybe your making more i am just wondering if i should explore option trading ( i am not even approved to do it yet with my online broker)

    Thanks clam
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  • RE: Advice....richardg40

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    I have only been trading options for 2 months so my experience and wisdom on the matter is very limited. There are others here, Tv and Netpi who are much more knowledgeable.

    But from that standpoint I have made much better income than from trusts. Whereas my average trust yield/income was about 17%, my income from covered call writing is double that. It's a good thing too because most of the time I am not using any margin at all so I have to generate more from a smaller pool.

    I can't begin to explain how it works, there are those that do a much better job than myself, but if you are interested I would suggest going to the Montreal Exchange and the Chicago Exchange, they both have good tutorials on options.

    It is a lot more work, there is nothing automatic about it but I feel in control more than I ever did with trusts and I am taking much less risk.

    DANGER, this is not for everyone. It is possible to us options in very risky ways and do a lot of damage. There is a learning curve so if you want to continue, be prepared to study for a few months and then take it slow.

    Most of what I have said was said to me by Tv and Netpi so you might want to go to them to get the straight goods.

    Dave
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