Correction Cll.to is mini Eca Encana

Tll.to The mini encana with the soundest strategy in oil sands just a steal at price and
begin producing next year. Bonus is oversea holding of a s amer oil co stock and heavy
crude refinery go to tsx.com and read news releases for yr. Tlm looks as though it is
selling non core assets to prep for sale. The second tier canroys if bill passes will be
gobbled by mergers and private equity CNE AAV PDS maybe PVX Buying assets at 50 cents on
dollar Like Tll.to also long term as cheap way to play oil sands wit Petrocanada as
partner

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Last edited on: 01-31-2007 10:51 am

oil/oil sands plays under the radar: COSWF(Heard lots of fund managers jumping in to
capitalize on oils sands play; expect activity to be profitable even if price of oil goes
below $50US--seems like a good buy and hold for awhile);
Worth researching.

Last edited on: 01-30-2007 07:24 pm

These trusts will still get crushed for awhile. There are lots of Canadian Trust Funds,
which are mutual funds that only hold trusts, and as the trusts convert back to
corporations, they will get sold off hard prior to the uncoupling back to corporations.
And these trusts will convert. My government doesn't want to tax the earnings but the
distributible cash of a trust. There is no accounting standard for the calculation of
distributible cash and it is often manipulated up to make a lower, more appealing payout
ratios because the yield is also based the payout ratio is also based on DC not earnings.
No company in its right mind would maintain a capital structure where its taxed on some
amorphous calculation and I doubt they'll manipulate it down because then payout ratios
would be grossly above 100% and yields would be percieved as risky and unsustainable.
Another issue is that one of the main ways trusts increase DC is by having more cash on
hand by not spending a lot on capex. Without reinvestment in capex, a lot of trusts have
poor growth. This has already manifested itself with several canadian energy trusts
cutting distributions or annoucing conversions back to corporations. Then former trusts
will be competing against regular companies that have reinvested for growth but also have
nice yields (ie: the canadian banks). I own one trust, its a business trust not an energy
trust and it got about a 25% haircut after the new legislation was announced. Since
there's still a 4 year grace period, I'm waiting to breakeven through distributions and
hopefully price will appreciate a little bit too but then I'm selling trusts for good.
Without the tax advantage they have no edge.

Last edited on: 01-29-2007 11:15 pm

the last proposed legistlation ive read of is that exsisting trusts will be taxed as corps
starting 2011 and new trusts will be taxed as corps starting this year so essentially as
soon as they are formed they are taxed like corps. its a shitty deal but what can you do,
i feel the new laws will make the oil and gas companies like TLM , PCZ, CNQ and IMO more
competitive investment options to trust investors in the future. no yes??

I do not know what Canada will do with the Oil and Gas and Royalty Trust. Right now the
plan is to tax them as regular corporations in 5 years. Others suggested 10 or more years.
Still others suggested that only newly formed trust will be taxed at regular corp rates,
which would grandfather in the pre-existing trust. I purchased my interest in ERF and CNE
prior to this recommended change and lost 15 percent of my purchase price, but I
retained my interest due to the high yield. I believe the stock price will go back to a
normal range when Canada makes it mind up, and oil and gas stays above $50 per bbl.

What about the dividens? The price is down now but still up from my purchase.

What do you think about the trusts? I have been waiting to pull the trigger on ERF for a
long time. It moves up nicely when price of oil rises and pays big dividend.

Talisman vs. Canadian natural Resources Vs. Petro canada vs. Imperial Oil.....all great
companies . Having a hard time deciding which way i want to go...any ideas...maybe
something i dont know about ( it wouldnt surprise me ) thanks