for asking this question on other Boards. First, I know that Yahoo P/e is trailing. However, what are the opinions about this P/e and another CNE?
If you pull a chart on a few canroys you will see they started down in Aug 2006. That was giving you an indication that the sector was starting to correct in Aug. By day after halloween, it was all over except the shouting.
If you have profits you might consider locking some of them in at this time.
yea, i built positions prior to halloween as well. the good news is that they continued to pay divies. that mitigated some of the paper slip.
what i, like i suspect other posters have also done, is add to these positions post-halloween and traded a few short-term gains to bring my real-basis down. except for aav i'm sitting above break-even on most everything, and the trade-gains from other canroys have offset any still extant paper losses.
So be it but there were 3 posters I specifically remember back in late November 2006 who took a bath on these canroys to the tune of over $710K, $290K and $265K. They had everything tied up into O&G Canadian Trusts, and a huge concentration in PWE.
I have ended up with the almost identical setup.
Only in my case unfortunately I bought most of the Canadians just prior to the Oct 06 meltdown. I did this based solely on being reassured by the new Canadian government about the future canroy tax situation.
If you or I had done this to a bunch of investors it would be sue-able.
Must get over that.
Still the portfolio is now doing well, and hte has actually pretty much recovered to pre-disaster level.
I agree with priviet and mlpnewby59's investment strategy.
I own the following with high dividends and great appreciation.
Canroys - HTE, PWE, CNE, AAV and PGH
Shipping - FRO, DSX, GNK, ONAV, ESEA, QMAR and EGLE
I also like the mlp's as a safe harbor for conservative income growth. The capital appreciation this year was a bonus. I own epd,epe,dep,apl,atn,mmp,sxl, and dpm right now. I believe the Canroys have the same capital appreciation potential at this point. The market hasn't even factored in the appreciation of the Canadian $ yet.
The interesting sub plot to the Tax Fairness plan is that the potential exsits for some of the Canroys to convert to MLP's in 2011. Those Canroy's with exposure to US interests might be valued higher the closer we get to 2011, provided the proposed tax change becomes law. If you own US mlp's, and understand how they work, you might want to expand into the Canroy's with more than one holding.
My portfolio weightings change over time as I believe it should for all investors. I was an investment advisor for over 20 years before retiring 5 years ago. One of the biggest fallacies of Wall Street is the NEED to remain diversified and in balance at all times. (Subtract your age from 100 to arrive at a balance that should remain in stocks verses bonds, complete nonsense.) This is a recipe for mediocrity, but it promotes buys and sells for brokers.
I spend a good bit of time doing my homework. Reading the reports listening to all the conference calls. Once I am convinced of my fundamental analysis, I buy. In the case of the Canroys I bought after Halloween and continued to buy through January. I just added to HTE when they announced the secondary. My point is that when you ask if I have other investments, it implies that my investment approach if flawed. I mean no disrespect when I state that perhaps YOUR investment approach is the flawed one if it is too spread out. I never made money that way, when something went up another went down, IMHO.
I also like the shippers, I prefer the wet shippers and own FRO, NAT, VLCCF, GLNG and ONAV right now.
The reason other posters are taking you to task is because the PE ratio of Canroys is not as important as other metrics, namely cash flow, pay out ratio, life of reserves, and others. Perhaps you could spend more time educating yourself.
My suggestion would be to listen to the conference calls of the top 5 or 6 trusts. Digest the highlights of the company reports to see what THEY find important, and finally view the past company presentations. After doing this due diligence you will know what is more important in this sector verses another more conventional one.
Good luck investing!
Back in January, they closed a deal with Conoco-Phillips to purchase some of C-P's undeveloped holdings for a little over 1 billion dollars. If that was charged against the first quarter earnings, it would send their p/e through the roof. I don't know much about this kind of stuff, and I may be way off base, but their are some smart posters here who can answer your question.