Comments on: Canadian Energy Trusts Look Cheap http://www.runtogold.com/2008/12/canadian-royalty-trusts-look-cheap/ Monetary science applied to current events focusing on the role of gold and silver.. Wed, 17 Mar 2010 04:12:38 +0000 http://wordpress.org/?v=abc hourly 1 By: Robert Sczech http://www.runtogold.com/2008/12/canadian-royalty-trusts-look-cheap/comment-page-1/#comment-767 Robert Sczech Mon, 15 Dec 2008 06:12:48 +0000 http://www.runtogold.com/?p=985#comment-767 Before considering Canadian trusts, one should answer three very important questions: 1) What is the reserve life ratio? That is, how many years can production be maintained at present production rates? 2) At what price of oil, does the production become uneconomical? For instance, in comparison to conventional oil companies, Canadian tar sands require a much higher price of oil in order to be economical. 3) What is the risk of confiscatory taxation of oil profits in Canada? Before considering Canadian trusts, one should answer three very important questions:

1) What is the reserve life ratio? That is, how many years can production be maintained at present production rates?

2) At what price of oil, does the production become uneconomical?

For instance, in comparison to conventional oil companies, Canadian tar sands require a much higher price of oil in order to be economical.

3) What is the risk of confiscatory taxation of oil profits in Canada?

]]> By: Fred D. http://www.runtogold.com/2008/12/canadian-royalty-trusts-look-cheap/comment-page-1/#comment-766 Fred D. Mon, 15 Dec 2008 05:32:56 +0000 http://www.runtogold.com/?p=985#comment-766 I agree and would start to prudently initiate positions starting right now with a plan to invest a full amount over the coming 6-8 weeks, maybe 12 and re-invest the dividends into shares, probably until the stock rises to an annualized dividend of 10%. Then enjoy the cash flows waiting for a possible takeover. I would diversify the position over 3-4 trusts, making sure they are oil and gaz trusts. I agree and would start to prudently initiate positions starting right now with a plan to invest a full amount over the coming 6-8 weeks, maybe 12 and re-invest the dividends into shares, probably until the stock rises to an annualized dividend of 10%.
Then enjoy the cash flows waiting for a possible takeover.
I would diversify the position over 3-4 trusts, making sure they are oil and gaz trusts.

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