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Not as good as the 13% yield on Harvest Energy Trust; but still very respectable. The odd thing about Bank of America ($48.25) is that in the past year and a half, the stock ten times got up to $47.25 and faded away. It was like it was hitting a wall at at this level.
But this week it convincingly broke through the wall and chartwise is now expected to have a solid upmove.
Great company; great history; great stock; great opportunity !
Why is it that the energy trusts have such a high yield ? The expectation is that they will have to reduce the distribution; the fact is that for the most part distributions have been increased
With crude at $55 to $75 these companies now have much more cash than expected and the current payout ratios are much lower than anticipated. There is now almost abundant funds, available for exploration. Our view is that current levels of distribution will be maintainable for longer than is now expected. Twelve per cent is a great return.
There are lots of energy trusts that currently pay 12% a year; and they pay monthly; and these are well established Canadian oil and gas producers. Our oil and gas stocks are among the most treasured, and most sought after stocks, in the world !. It is hard to believe that they are so undervalued.
The main reason that they are so cheap is the concern that they will deplete their reserves, sell less product, and reduce their cash distributions. So far, it has gone the other way, the great majority of them have increased the cash distribution
To find out more about us, and these great stocks, try our website at www.fraser-ratings.com
Today the price of crude traded well over $70.00. If it closes at $71.00 we would take it as a breakout. The chart expectation is for a move to $86.00. We would all then expect the price of Canadian oil stocks to move up. We have a choice list of six of these stocks. Check our website; www.fraser-ratings.com.
On the U.S. talk shows they are now talking about a wall between the U.S. and Mexico ! Would it go from the Gulf of Mexico to the Pacific Ocean ? Would it be longer than the Great Wall of China ? Would it be over 30 feet high like the one in Israel ? Should we be investing in cement stocks and SNC Lavalin ? We do not intend to be critical either way; in Mexico many of those who want to work can't get a job. In the U.S. there are many who need workers and there are not enough Americans available.
In our latest Report (due out in a few days) we show two compelling charts that suggest it is time for defence.
We are not talking about the end of the bull market but rather a correction of about 5% which is 550 points on the Dow. Should this happen in the next 6 weeks the bears will be out in full force.
Corrections are definitely a plus because some very good stocks will become cheaper. We have 21 of them that we will be keeping an eye on. Contact us at www. fraser-ratings.com.
