ONEREIT TRUST UNITS T.ONR.UN

RE: RE: RE: favourable

[nijinsky70]

Hi retiredcf:

Yes, I also caught Allan Jacob on Market Call earlier and his analysis and mine are identical, i.e., if you give Poseidon a yield of 10% (rather high, since the best TSX blue chip only pay about 4% in dividends) that would mean the service part of ONR is worth about $10.  The current natural gas producer has to worth about $3 to $4, hence an approximate value of $13 to $14 for ONR as a package.  We trade at about $9 today.

If the service part grows and can pay out more in dividends down the raod, that should grow exponentially.  I just hope the company is being conservative in the intital payout of $1.08 a year.  Who knows?  What is ONR now could be worth $20 as a package not so far down the road. 

By the way, I see our SP has been sold down to $9 on very low volumes.  This kind of stock market manouvers happen all the time.  It's meant to shake out the weak hands.  If the volume is low, I don't pay attention to them.