Crius Energy Trust Tr Unit CRIUF

RE:RE:RE:big dividend cut imminent ?

[deisman03]

I don't see them buying through NCIB at this point and they already said they've stopped. 

DRIP is a great way for people to compound their earnings on a monthly basis, especially when distribution levels are so high as compared to price. 

Right now that should be working in a similar manner to NCIB other than it's kicking the pay out can down the road and if it gets to BIG and they can't get enough units out of the market, it will just dilute the units even more. 

DRIP is best for companies with good growth prospects.

There is one other thing about changing their customor base. It's far more difficult to maintain if they aren't extremely competitive. Also the industrial customers, even with their bulk purcase discount are ALWAYS a solid base until their contracts run out. They do provide a guarantee of sorts for revenue without nearly as much maintenance. 

This all casts a cloud of doubt over the new business model. 

The other companies such as JE are also going after the same residential customers and that could cause a price war where they both lose money while trying to cash starve each other out. It may even be going on right now. 

The plant I used to work at got rid of their energy provider and went directly to the manufacturer. They used as much natural gas every day as the residential area of New York City used in a year so they had substantial clout. This is the other side of the coin when dealing with industry. 

It's one of those things that people haven't got much choice over. The only options they have are making short term contracts during special discount campaigns from different providers. 

Some companies, such as Fortis, sells they NG to their customers at a specified percentage over the cost of feed stock and bill for shipping instead. 

Crius can't do this because they don't have the infrastructure and have to pay for delivery. 

GLTA the good folks here