New-born Baby's Cans: Making Money in a Down Market

[New-born baby]

Looky here

btw, anyone know if I can sort these trusts on the website by distribution yield?

Sure. Go to this site and look 'em all over

http://www.investcom.com/cgi-bin/nameindustry/incometrust.cgi?ID=1&string=Energy&exact=&IND=&CAT=&SCT=yes

[dmk112]

NB, I wanted to know if you can SORT them, It's pretty time consuming looking through all the income funds (not just energy) not to mention that my eyes are falling out of my sockets as I'm trying to look at that table. LOL

[TFred]

Greetings NBB,

I thought you might find this chart interesting:



It appears to me like the TSX energy trust index is breaking out ,and has 30+points in it,if that read is correct.

Im sure you saw the PTF-PWT merge,and the nice action with both.When you buy your ''Cans'' on the TSX,is any currency conversion involved with IB,or does it convert automatically?It appears that most US trusts are a better buy on the TSX?

Also PBT,HGT and SJT all reduced monthly distributions,now yielding about 6%,I think some downside is coming.

cordially Tom

[New-born baby]

Greetings NBB,

I thought you might find this chart interesting:



It appears to me like the TSX energy trust index is breaking out ,and has 30+points in it,if that read is correct.

Im sure you saw the PTF-PWT merge,and the nice action with both.When you buy your ''Cans'' on the TSX,is any currency conversion involved with IB,or does it convert automatically?It appears that most US trusts are a better buy on the TSX?

Also PBT,HGT and SJT all reduced monthly distributions,now yielding about 6%,I think some downside is coming.

cordially Tom

beautiful chart work, Tom! Your analysis is correct

All Cans are better buys on the TSX because the Cans have higher yields on the Canadian side. Why? Canadians don't bid the price up as high as Americans so that they yield more

Cans are being squeezed by the USD/CD exchange rate. That's why I suggest you invest your dollars in SU. Oil sands has tremeeeeeeeendous upside potential, especially considering that the oil is in a stable country.
SU target is currently $109 USD, and current price is $88.36 or so.

[dmk112]

Hey guys, check out WRP - $14 divy for a $8 stock?? Can someone make sense of this one?

EDIT: NM, I think it was a one timer after looking @ the chart.

[TFred]

Greetings ,

NBB could you give some thoughts on EIT.UN?It was mentioned in another group as a quality trust,I have no info on it as of yet.

Also COS is going for a 5 for 1 split soon,and SU is a major operator of COS's property,which do you like better?

cordially Tom

[New-born baby]

Tfred

Greetings ,

NBB could you give some thoughts on EIT.UN?It was mentioned in another group as a quality trust,I have no info on it as of yet.

Also COS is going for a 5 for 1 split soon,and SU is a major operator of COS's property,which do you like better?

cordially Tom

Hi, Tom,
COS.UN is one hot trust . . . will raise divy soon, as well as split 5:1. I think COS has tremendous capitol gain upside.

SU: I own this one, and the chart says $109. It is fully optionable (something COS is not) and has a very rich option chain. In fact, you could buy SU at $90 and sell the $90 JAN 07calls for $11 and basically guarantee yourself an $11 gain on the stock. I think both are winners; I prefer SU because it is on the US side and has the option chain. COS is going to have the bigger divy, though.

Frankly both are excellent.

EIT.UN is basically a mutual fund of the oil/gas trusts. Divy is low, about 11%. If you want a stable income check without any worries, EIT.UN is it.

[noshadyldy]

question for the pros here

Hello NB and anyone else that can edjykate me.
Ok. Gold was down today, so was oil. (I do know that XOM missed the street)
BUT the dollar is also falling. So Isn't is usually that the falling dollar will bolster gold? and Does gold and oil usually run in tandum, opposite, or have not relationship?
Thanks.

[New-born baby]

Oil is gold

Hello NB and anyone else that can edjykate me.
Ok. Gold was down today, so was oil. (I do know that XOM missed the street)
BUT the dollar is also falling. So Isn't is usually that the falling dollar will bolster gold? and Does gold and oil usually run in tandum, opposite, or have not relationship?
Thanks.

When commodities strengthen, the dollar weakens. What happened today is just a shortterm pullback in oil. The smart money started to short oil three days ago. They are just taking profits. Oil is going to go up some more, and so will gold. Gold was overbought, needs to pullback and consolidate before moving higher.

The US dollar? Ask Jiesen (or anybody, for that matter). They are printing it as fast as they can make the linen upon which it is printed. (Just the printing of the dollar ought to cause cotton to rise). It will continue to weaken, imo.
So I would consider today to be a short term thing.

[noshadyldy]

Thank you, NB. Do you see a relationship btwn the price of oil and gold, other than both symbolize a world in financial chaos? Just trying to get better at gauging my precious metals and oils/gas. Does one typically go up when the other down, in tandum or no relationship that you've noticed?
thanks.

[New-born baby]

Thank you, NB. Do you see a relationship btwn the price of oil and gold, other than both symbolize a world in financial chaos? Just trying to get better at gauging my precious metals and oils/gas. Does one typically go up when the other down, in tandum or no relationship that you've noticed?
thanks.

I don't know about the relationship between gold and oil. I do know that the USD goes down when the commodities (oil being one, but not gold) got up. Gold goes up when inflation hits. Perhaps gold and oil are tied in this way: if oil goes up, inflation hits, and gold follows.

Having said that, oil and gold "trend" higher when the dollar is receding. By "trending" I mean that the price action is not exactly penny for penny, and not changing exactly minute by minute. Today's action was an anomaly.

[noshadyldy]

I get it, NB. Thanks.
Yes. Oil goes up, dollar goes down. dollar goes down, gold goes up. The piece I was missing is that the dollar goes down when oil goes up. Thanks.

[TFred]

Greetings NBB,

Your thoughts on DAY.UN?

Picked up 500 at 12.80 post ex, .14 cent $C dist.,with the $C rallying,seems like a fair play.Rated good at Donkey lips SS sheet.The upcoming merger with Sequoia has pros and cons from everyone,what say you ?

cordially Tom

[TFred]

Greetings NB,

COS did split,and is up 6% post split.

How about that C$ Last I looked it was trading at almost .89.Looks like your forecast of 1-1 with the US $ is coming.Should bode well for TSX issues?

Hows your chart and opinion on DAY.UN?

cordially Tom

[New-born baby]

Greetings NB,

COS did split,and is up 6% post split.

How about that C$ Last I looked it was trading at almost .89.Looks like your forecast of 1-1 with the US $ is coming.Should bode well for TSX issues?

Hows your chart and opinion on DAY.UN?

cordially Tom

Hi, Tom,
I'll look into DAY and get back with you.

The 1.00/1.00 exchange rate is bad for Cans if oil price ever pulls back to $60 or less. Look at it this way: when I started in the Cans, oil was $40 and the exchange at 1.00/.70. $40 X 1.428 exchange = $57.12 CD

Now compare with these numbers and raised dividends:
1.00/1.00 exchange, oil at $70=$70 Canadian for oil
1.00/.90, oil at $70=$77.70 CD
1.00/.75, oil at $70=$93.10 CD
1.00/1.00 oil at $60=$60 CD
1.00/.90, oil at $60 =$66.60
1.00/.75, oil at $60=$79.80

You should be able to see that the Cans are taking in less money when the exchange moves higher, and oil does not move up in a corresponding way. It will make for inflation in Canada, which imports a lot of food stuffs.