I see. I own a little HTE. Haven't bought much because of the uncertainties over these CANROYs. I hear they are set to expire in 2011 or so but the opposing party in Canada is trying to extend their tax breaks so they can pay out the distributions. I also think they will drop their dividend.
Another company similar to NTE, that I prefer, is HIMX. Very similar company, they haven't announced their dividend cut yet.
My understanding is that Canadian natural gas prices in Canadian dollars were down in 2007. So that wasn't such a good year up there.
Precision also just acquired Grey Wolf, so that added something like 1.2 billion to their debt. So it's a very different situation from NTE right now. If Precision survives I think they'll be worth 20 or something. But it's a gamble.
One more thing, if Precision focuses on paying down debt, I don't see how that's going to be compatible with the trust requirement to pay all income out to unitholders. So at least one analyst says maybe the trust could turn back into a normal corp. at some point.
I've followed NamTai since it was a penny stock in in early 1990's taken public by Blinder Robinson. Is this stock a value buy absolutely.However the industry is cyclical and given the state of the world economy dont expect the stock to move anytime soon.Just collect your dividend and every 10 years NamTai stock has a crazy 400% in one year run.
The reality is the company stated they will start to lose money and will pay no dividend. The macroenviroment is even worse, it's the worst economic environment we've seen in a century perhaps. Outlook from now until 2012 is unbelievably poor.
That's why money is leaving. Smart money has already left to gold stocks and hard assets.