Tuesday, October 17, 2006

Precision drilling trust (PDS)

Just to echo my friend Frugal’s Oil market is close at bottom, I picked up some PDS, a Canadian oil/gas royalty trust yesterday.

According to Yahoo Finance, it’s yielding 11.7% based on yesterday’s close at $28.49 -- much more appetizing after the recent fall as can be seen from the chart. My read of the chart also tells me that it made at least a short term bottom. The technical picture was only a secondary consideration since I purchased it for its income generating potential for my asset allocation account.

For obvious reasons, the above is not financial advice. Please do you own due diligence before purchasing any stock! Other similar stocks that you could consider are ERF, PVX, PWI, etc.