Fairborne Energy Trust

FEL.UN-T

It has gone down due to the fact that it is a gas trust. In the long term recommends to stay with it.

Does own at a higher price. Hold it if you own it.

A lot of the gassy trusts look interesting. This one looks like it has had a higher low. Thinks there is positive divergence setting up in this stock.

Highly levered to natural gas. Coal bed methane driller. Also do a lot of tight gas which needs a higher gas price to make it economical. If you feel gas will reach $8 this would be one to buy. A bit more risky.

Has been reasonably soft, reflecting a good yield on its distribution. Distribution is not vulnerable, although if gas prices where to stay at these levels through Christmas, there probably would be a decline. Good management team and assets. Gas weighted, so buy on weakness.

(A Top Pick Dec 2/05. Down 16.6 %.) Still likes. Dropped along with natural gas prices. Fundamentals are still good.

On this one, you need to make a short-term call on natural gas prices. Essentially a pure gas play. One of the more aggressive plays in terms of their hedging policy. Now is a good time to trim and you will have opportunities to buy at lower prices.

Not on the top of his list for oil/gas trusts. At the level it is now, distributions should be reasonably secure. Good price.

Gas weighted so has dropped with gas prices. Good management. Buy on any softness and spread your purchase out.

Have had a bit of a slow start coming out of the gate. Has a significant natural gas focus which has been out of favour. You can buy looking for natural gas to go up or wait for it to actually happened.

(A Top Pick Dec 23/05. Down in 11.5%.) One of the gassier names and dropped with the price of gas. A quality name and would add more on weakness.

(A Top Pick Dec 23/05. Down 12%.) Being a gassy weighted name, this has come off in price. A good entry point. Still likes.

Gas weighted. Longer term, the gas market is going to be strong. Good value at these prices. They are experts in coal bed methane drilling which is a real upside.

(A Top Pick Sept 2/05. Up 19.2%.) Has a great slate of properties in front of it in the higher risk Peace River area. Good management.

(A Top Pick Sept 23/05. Up 2.5%.) Has a slower decline rate of its reserve life. He also thinks the reserve life will grow over time. The fifth largest coal bed methane producer in Canada. This has a less sharp decline rate in underlying assets.