Falling debt brightens Precision’s outlook

PRECISION DRILLING TRUST $7.13 (Toronto symbol PD.UN; Aggressive Growth Portfolio, Resource sector; Units outstanding: 275.6 million; Market cap: $2.0 billion; Price-to-sales ratio: 1.5; No dividends paid since February 2009; SI Rating: Extra Risk) provides contract-drilling services to oil and gas producers. Precision owns 351 drilling… Read More

Precision to convert early

PRECISION DRILLING TRUST $8.68 (Toronto symbol PD.UN; Aggressive Growth Portfolio, Resources sector; Units outstanding: 275.6 million; Market cap: $2.4 billion; Price-to-sales ratio: 1.0; No dividends paid since February 2009; SI Rating: Extra Risk) provides contract-drilling services to oil and natural-gas producers.

The trust will convert to… Read More

These two trusts should rebound in 2010

Lower oil and natural gas prices weighed on the cash flow and stock prices of these two resource trusts in 2009. However, recent announcements should improve their prospects in 2010.

PENGROWTH ENERGY TRUST $11 (Toronto symbol PGF.UN; Aggressive Growth Portfolio, Resources sector; Units outstanding: 289.5 million;… Read More

These four have long-term appeal

These four resource stocks are more risky than, say, Imperial Oil or EnCana. Still, we feel that their large reserves and low-cost operations put them in a good position to take advantage of rising demand for commodities as the global economy recovers. However, only three… Read More

Dear Pat: What do you think SCITI ROCS Trust, and what are the implications of the scheduled windup of the trust? The tax deferral is attractive to me, and it offers a high yield. Thanks.

SCITI ROCS Trust, $5.46, symbol SCI.UN on Toronto (Units outstanding: 13.0 million; Market cap: $70.9 million), is an investment trust that aims to give investors diversification and tax-efficient monthly distributions through a roughly equally weighted portfolio of income funds that are included in the Scotia… Read More