Some thoughts on the last 3 daysRER most certainly was dragged down in the Inc Trust cascade, no doubt about it, because many investors were playing RER as an RT conversion play. Also, the change in tax status for the Energy RT's has and will change the investing landscape for the whole energy sector. How I ma not sure, but that's the thing - uncertainty has been introduced, and money hates uncertainty ...
The good news IMO is that RER's -$2.40 swoon was on only about 600,000 shares ... peanuts IMO for a compnay with 35 mm shares OS. Today's rebound is nice, but I am not so sure that this is the end of the down draft or not. Could be some tough days ahead yet for the energy jrs as fallout from the Income trust situation continues.
Other good news was the Q3 report. I thought it was quite good. Oil produciotn was up and CF was great considering NG prices were as soft as they are going to get. Q4 will be better. On a P/CF basis RER even with a soft Q3 NG price is still not over valued IMO.
Based on Q3 numbers and the share price sell-off I added more shares at 15.90/95. I am very underweight on energy, and RER is the only domestic jr. play in my portfolio, so it made sense for me to add on the weakness ... for those overweight already probably best to sit on th esidelines and see what happens with the Income trust file.
Good investing!