Energy Trusts - Dec 29, 2008

There are so many ways of getting exposure to a possible rebound in the energy area, if a rebound happens.

One way is to play the energy companies that are income trusts and pay a monthly distribution typically above 50% of cash flow. We have quite a few of them in Canada.

These trust can be very volatile, so stops are of utmost importance. Also, most of these trust are loaded with debt and are suffering from the crash of commodity prices and the tightness of the credit markets. On the other hand, they have been out of favor for months and any recovery or rebound in the price of commodity may attract fresh money.

My interests are purely technical and seasonal.

If I decide to allocate a portion of my funds to the income trust area of the Canadian energy market, I may buy a basket of them.

I have done some technical and performance filtering, looked at quite a few charts, looked at some numbers, and come up with a list.

Here's my list, all on Toronto Stock Exchange, TSE


ARC (AET.UN.TO)
Bonavista (BNP.UN.TO)
Crescent Pt (CPG.UN.TO)
Daylight (DAY.UN.TO)
National (NAE.UN.TO)
Peyto (PEY.UN.TO)
Zargon (ZAR.UN.TO)

I may buy all or none. If I buy more than one, I may do so at the same time or at diffrent times depending on how the charts look.