Pilot Guy

Comment Stream » BTE

Comment Stream
Filter comments by:
Highest rated Latest comments
Or filter by symbol:
  • High-Yield Canadian Royalty Trusts: What's the Catch?
    The argument that I was making did not reflect on all trusts. The article suggested that some HIGH YIELDING trusts were like magic – ignoring the perfect market theory.
    XTR pays out quarterly – other ETF’s that cherry pick the universe of available stocks are subject to the same underperformance that has been documented in study after study.
    I kinda like Buffet’s advice – buy a universal ETF.
    EIT.UN is a fine choice that makes it look attractive with the run-up in crude prices. If that segment declines.. it will crater. It is not a substitute for a broadly representative basket of Trusts like ATR.
    ERF is a fine trust – it only yields 5.04% and is a 4 star stock
    AND.UN yields 7.6% and is a 4 start stock. These are not the trusts that I or the article was discussing
    I am merely suggesting that investors do not chase outlandish Trust yields greater that 12% and not expect nasty surprises such as stock price decline and payout diminishment or suspension. Risk = Return.. you may make out like a bandit.. or lose everything.
    Jun 28 08:02 am |Rating: 0 0 |Link to Comment |View article
  • High-Yield Canadian Royalty Trusts: What's the Catch?
    OK.. take Newport.. one year stock performance - down 45% - two Star Rating at Globefund - Two year stock price down over 60%.
    2007: Loss: $26 million on $569 million in Sales.
    The year before loss: $23 million on $372 million sales.
    Guarantee on future Dividend payouts - Nada - they can be cut at any time and several Trusts have done so this year.
    Take a flyer - hope for a takeover - pray it happens before 2011.
    Jun 27 22:07 pm |Rating: 0 0 |Link to Comment |View article
  • High-Yield Canadian Royalty Trusts: What's the Catch?
    There is no free lunch here. The trusts are valued efficiently taking into account their yield. If you were an investor in the vast majority of these high yielding trusts last year at this time you would be down in value significantly.. even after dividend yield.
    Very few high-yielding trusts are ever rated as 4 or 5 star performers.
    I perfer to buy the index fund of Candian Trusts (XTR - up quite smartly in the past 12 months) - if you cherry pick - good luck with that
    Jun 27 19:28 pm |Rating: 0 0 |Link to Comment |View article

Pilot Guy's Comments Stream Stats

  • 14 Comments, 0 , 0
  • Total Comment Stream rating - = 0