how about ERF (Enerplus Resources Fund) ? Click here to go to the original topic          Value Investing Forum Forum Index -> Value Stock Picks mongolia Tue Dec 06, 2005 10:16 pm     how about ERF (Enerplus Resources Fund) ?  Thanks blast_investor Tue Dec 06, 2005 10:47 pm       This stock Enerplus Resources Fund (ERF) is Canadian oil and gas trust trading in USA. I have never been a big fan of Canadian oil trust due to valuation reasons. ERF is pretty expensive stock based on its reserve or cash flow. Usually oil stocks are priced with price to cash flow ratio metrics or price to reserve number. ERF is trading at Price to Cashflow ratio of close to 10x, which is pretty expensive comparing to US oil driller. Typically US oil stocks only trade at 6x to 7x on this metrics. The positive side for ERF type of Canandian trust is high yield, close to 9%. But in my opinion, high yield is less important than its valuation and reserve growth. I am oil bull and I prefer high reserve cheap US oil stocks over Canadian expensive plays. For an oil stock, major portion of high yield dividend is return of capital, not pure profit.          Value Investing Forum Forum Index -> Value Stock Picks Page 1 of 1 Search Engine Indexer BlastInvest @2005 p h p B B © 2001, 2002 p h p B B Group