Viking Energy Royalty Trust (VKR.UN.TO)

TRADE
Probably a takeover story. Management left about six months ago. Speculative.
HOLD
Stock has been disappointing. Company made a poor acquisition some time ago. The president and CFO have left. Is throwing off an extremely high yield of 16%. This could be cut back. Relatively light reserve index.
DON'T BUY
Have made some recent acquisitions to try and shore up production. Too much uncertainty with this trust.
HOLD
More interested in natural gas than in oil. Also prefer trusts that can increase their reserves. Likes Focus Energy and Peyto Energy. Will probably be a takeover.
DON'T BUY
Oil and gas weighted. Has been volatile over the last 9 months. Cut distributions 3 times.
WATCH
Have had some mixed performances. Has a new president. Recently it has been acting well. Reserve is of little low so they'll probably have to make another acquisition.
DON'T BUY
Had some issues. Made an acquisition last year that didn't work out. Because of this, they have had production problems. A number of management changes. Not sure who is going to run it going forward.
HOLD
Management change and a reserve reduction. Expect it to be taken out as he can't see them carrying on much longer. It is cheap at this point.
DON'T BUY
Lost some top management. Reserve life is not strong. 20% payout. Would like to see some strong management command. Not a good situation.
HOLD
Yeild is 18%, A deal may be in the works for a takeover. Hold
DON'T BUY
The oil patch is coming under stricter standards. Has had some management problems. A bad acquisition diluted their distributions.
BUY
Very oil oriented. Prefers gas trusts. Also heavily leveraged. The cheapest oil trust.
HOLD
Leverage on the balance sheets (debt to cash flow) is one of the highest. A drop in oil prices could have a severe affect on distributions. This Company is at the lower end of the value of production a barrel of oil per day to the unit price.
WAIT
Not a favorite royalty trust. Paid too much for some assets on which the reserves and properties do not seem to be working out as well as they should. May have a reserve right down. Consider buying under $5.
HOLD
Have done three equity issues in the last 12 months, which has been a cloud over its performance. Have a good 10-year reserve life index. Balance sheet is in good shape.
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