adelaide andy

This is the sound of margin calls made worse by the market realising that we are in deflationary spiral. It still has a very long way to fall.

Very good news possibly in the making for income trusts. If you read Iain Frasers comment near the bottom. I`m already very overweight these Gassy trusts but i`m tempted to add more.(especially daylight and Peyto). "We think there is still much hope for the battered energy trusts. On Oct. 25/05 Prime Minister Harper said:" The government continues to overtax Canadians and run multi billion dollar surpluses, yet their first instinct is to attack an investment vehicle that can make the difference between bare survival and a dignified retirement for millions of Canadians." Well chosen words. We bring this subject up because last week a Conservative Party worker phoned to solicit my support; my reply was that Mr. Harper's change of mind had cost millions of us billions of dollars; how could we vote for him? The party member's reply was that just about everybody was saying the same thing. Mr. Harper almost has to change Flaherty's proposals. Also, the Liberals and the Bloc are soon to have a meeting on this issue. The position is that these two have 152 seats. If they can get three more, they win. We think it will be easy to get three more. We may be close to the low on the income trust index." http://dvtechtalk.com/January/January17.htm

IGBT....Mcdep has the P/E for the next 12 months at 11. http://www.mcdep.com/pwt71109.pdf

This happens to be my largest holding as well. Do any of you guys hold any other trusts. I`m also a holder of Peyto and Daylight resources which are more orientated towards Nat Gas than Oiland NGLs. I think Penn West is 50-50 whereas Daylight has 55-45 in favour of Natgas and Peyto is nearly 100% Natgas. What i like about daylight are the payout ratio of only around 67%(Recently reduced the divi) but also reported a solid set of results(operating costs in the industry also appear to be coming down) last time out and with the yield still at 16% . Peyto has very low operating costs(industry leader) and proven long life/high quality reserves of 14years(probably more likely 20years ) Also taking advantage of falling industry costs. The yield is only 10% but takes into account the quality of its reserves. I expect this will get taken out in the not too distant future. They have never decreased the divi and increased it 4 times. So if you want to play the Natgas story there may be other companies to look at. Interestingly Penn West shot up at the end of day on huge volume. It will be interesting to see whether there is any carry through from that today.