3 Canadian Energy Trusts
Dear Bottarelli Research Member,
Get ready for a treat. I’m going to step outside the box and introduce you to a great way to gain capital appreciation, balance out our portfolio, and generate monthly dividend checks. I’m talking about Canadian Energy Trusts. Although they’re virtually ignored here in the states, the select group of investors who realize their benefits can attest that they’re truly a wonderful investment opportunity. The three you’ll learn about today have all been beaten down hard, but now I think the bottom has been established. That means now is when to strike for maximum upside potential. Best of all, the monthly dividends are partially tax-free to us here in the states, and it doesn’t get any better than that folks! With that, here’s Bryan with the expanded write-up.
Sincerely,
The “Secret” of Canadian Energy Trusts
Mark told me about a little “trick” that he used with Canadian Energy Trust, and today I’d like to share that trick with you.
What Mark does is use his margin account to buy three trusts: Provident Energy Trust (PVX – NYSE), Advantage Energy Income Fund (AAV – NYSE), and Canetic Resources Trust (CNE – NYSE).As these three trusts increase in value, he simply calls his broker and converts them. Because they are partially tax-free to us here in the US, Mark says this is “a hell of a great way to really step up your income flow to your portfolio.” Now, don’t get me wrong. I’m not saying you have to do this. Since all three are traded on the NYSE, you can easily just buy and sell them like any other investment. But I thought I’d give you an inside look into one of Mark’s many successful investment strategies and offer the same tricks to you. Having said that, let’s dig into each of the three Energy Trusts…
Provident Energy Trust (PVX – NYSE) is Mark’s favorite pick. PVX engages in the exploitation and development of crude oil and natural gas in Alberta, Saskatchewan, California, and Wyoming. According to the most recent figures, PVX had proven plus-probable oil and gas reserves of 134 million barrels of oil equivalent. And what’s nice about PVX is that it offers you an oil and energy play in some of the most stable and predictable producing regions. And as you can see, its’ just beginning to turn upwards.
Advantage Energy Income Fund (AAV – NYSE) is also an open-ended unincorporated mutual fund trust in Canada that engages in the exploration, development, and production of natural gas, crude oil, and natural gas liquids.
Canetic Resources Trust (CNE — NYSE) is a more broad-based operation that engages in acquisition, production, processing, transportation, and marketing of crude oil, natural gas liquids, and natural gas. In Canada, they operate in Alberta, British Columbia, Saskatchewan, and Manitoba. In the US, they operate in North Dakota, Montana, and Wyoming. As of last April, the trust had 791 mbbls of light and medium oil; 222,192 mmcf of natural gas; and 4,171 mbbls of natural gas liquids.
Out of the 3 plays, Provident Energy Trust (PVX — NYSE) offers the best mix of cash flow, oil, and gas operations. But in terms of real appreciation, Canetic Resources Trust (CNE — NYSE) would be the pick. In terms of a recommendation, I’d like you to add at least one of these three to your portfolio. If you only choose one, then go with CNE as follows.
PLAY: Buy shares of Canetic Resources Trust (CNE – NYSE) at or under $13.00, good for the week. To limit your risk, place a protective stop loss at $9.00.
Sincerely,
© 2012 CSR Group, LLC. All rights reserved. Published in USA.
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