Eric Nuttall Parallel Energy Trust PLT.UN-T COMMENT Feb 11, 2013

(A Top Pick Dec 20/11. Down 42.21%.) Had a high level of income and he was positive on the commodity. A lot of their production was in the natural gas liquids sector, which fell out of favour. Probably lost about 10% of his investment.

Natural gas & liquids. It has been under a lot of pressure. The balance sheet is probably a little too stretched here. You will see companies like this spend a lot of energy in trying to reduce leverage on the balance sheet. They should have 1-1/2 to 2 times revenue to cash flow.

It comes down to the formation. You have to understand how they are generating the distributions. He met with management to understand. He feels it is high. They produce a lot of natural gas with propane. They are in the US so we have to look at prices for propane in the US. He prefers Canadian companies with Canadian formations that he can understand.

A cross boarder trust – Canadian listing with US assets. Their assets have a very low decline rate. You spend less money on the asset each year. So it is okay to lever up the asset more than you would in Canada. Likes their exposure to the propane industry. The US are expanding the export capacity. The Panama Canal is expanding to accommodate bigger ships such as ones carrying propane. Pay attention to the propane market. Take comfort in the dividend(16%), but don`t go in head over heels. We are starting to see more research into the name. Nibble a bit on it.