Canadian oil trusts are very cheap today. After yesterday's fall in oil prices to $103, these things now trade at multi-year lows, in part due to continued uncertainty about a 2011 tax act in Canada which I wrote about several months ago here.
Stocks like Enerplus (ERF) and Pennwest (PWE) , which have significant oil and gas exposure, trade at about three times revenue and at a fraction of their proven reserves. All Canadian oil trusts are trading at singificantly smaller multiples than the major international oil and gas conglomerates.
Uncertainty is likely to persist until the 2011 tax act comes into force, and these will fall further if oil goes down further. But, the long term trajectory of oil is up, and the uncertainty about the 2011 tax act will likely go away.
I don't make stock recommendations, but I think that these are worth a look, especially with dividends in the 13-15% range.
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Related Articles:
Oil Falls a Little and Canadian Oil Trust Collapse Completely; Uncertain of 2011 Canadian tax act to blame. by JRodgers - Jul 08, 2008.
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