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Sunday, March 16, 2008

Top Pick Canroys Based on Discount to Net Asset Value

The March 7, 2008 issue of the CIBC Oil & Gas Royalty Trust weekly report has a Net Asset Value matrix for most of the Canadian Oil & Gas Trusts (Canroys). I like to buy Oil and Gas Trusts based on Net Asset Value (NAV) since all these business's are selling the same product. There are other metrics to consider. However, NAV is a good base to start from.

Based on NAV my Top Picks are as follows;

Advantage Energy (AVN.UN-T $10.85) Trading at a 26% Discount to NAV of $14.75
Paramount Energy (PMT.UN-T $7.86) Trading at a 18% Discount to NAV of $ 9.62
Baytex Energy (BTE.UN-T $21.00) Trading at a 12% Discount to NAV of $23.96

The discounts reported are based on March 7, 2008 closing prices.

Members of our mailing list will be emailed a copy of the CIBC report.

Please perform your own Due Dilligence.

In interest of full disclosure I own units in all three of the above Canroys.

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