Stockchase Opinions

Glenn MacNeill, P.Eng. Thunder Energy Trust THY.UN-T DON'T BUY Aug 23, 2006

When they converted to a trust, some of their best assets slipped out of the equation. Have not been meeting production targets.
$9.000

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HOLD
A relatively small trust. Gas weighted. You will want to see them hitting some good production numbers for 2/3 quarters in a row.
HOLD
Converted to a trust right now. Has been a descent junior pride previously.
DON'T BUY
Missed its last production numbers. There are better candidates to invest in.
BUY
A terrific company. A natural gas producer. The cost of drilling is going up, availability of rigs is harder to get. Feels that in 6/9 months the natural gas price has to recover. Good price.
DON'T BUY
Not well liked by the market. Good assets from the Thunder Energy company did not end up in the trust. Took on quite a bit of debt. Paying a relatively high payout relative to their cash flow.
DON'T BUY
Gas weighted trust that has always paid out more than its earned. recently had a cut of 20% on its distribution and yet is still yielding about 16%.
DON'T BUY
Had a deduction in its distributions recently. Struggling to make some production again. Fairly gas weighted. Relatively high levels of debt.
DON'T BUY
This resulted from three companies merging into a trust. This is typically a recipe for disaster. Management continuing on, doesn't have much knowledge of the new business.
WEAK BUY
A higher risk natural gas play with a higher decline on its gas wells than he likes. Debt is too high. Trades at a significant discount to the group. May be OK for a higher risk investor. Would prefer better quality like Peyto (PEY.UN-T) or Fairborne (FEL.UN-T).