Are Hex and FRU too Risky to Buy?

[dogleg]

Both of these stocks are tempting but I haven't bought any royalty oil stocks. Any opinions as to whether there is any more risk in it than any other oil play like SU for example? Thanks.

[bettyboop]

I'm also wondering and would appreciate any comments.

[londoncalling]

I am very interested in adding FRU to my portfolio. I have read up on this stock on other forums and I think that other than the obvious difference volume, price and yield this stock has larger spreads. As a stock the business would be similar to AW or BPs but in a different sector. I like the business model as it seems to have a large amount of properties and less inputs in comparison to other O + G companies. I think it is a little over priced currently but the yield is fairly attractive. I put in an order on Friday for FRU but it never came down to my price. Does or has anybody owned this one?

[gibor]

Both of these stocks are tempting but I haven't bought any royalty oil stocks. Any opinions as to whether there is any more risk in it than any other oil play like SU for example? Thanks.

don't get why do you place HEX and FRU in 1 basket?!

HEX is like index ETF (just with covered calls), imo will a little bit underperform XIU, but higher and monthly dividends.

I was looking at FRU, AVF and EGL for some time, at the end decided to buy EGL.UN about month ago -> more promissing growth, no debt and better dividends

[londoncalling]

I like that EGL has 100% US exposure as I am currently lacking exposure to US energy. The only thing holding me back form buying EGL is that it has a limited history. I already hold LNV which has limited history. I have been watching EGL since you first mentioned it. I may have to go back over the numbers between the two and make a decision. I'll also have to decide when to buy.

[doctrine]

FRU isn't paying any taxes yet - their deferred tax deductions will run out next year or shortly after and their distribution will be lower, unless oil prices increase by 30-40% by then (always possible). And they have a pretty big depletion rate problem as well. A lot of this I suspect is built into the price although it has run up lately.

[gibor]

I like that EGL has 100% US exposure as I am currently lacking exposure to US energy. The only thing holding me back form buying EGL is that it has a limited history. I already hold LNV which has limited history. I have been watching EGL since you first mentioned it. I may have to go back over the numbers between the two and make a decision. I'll also have to decide when to buy.

I also had LNV , bought 9.8 sold several weeks after 10.57 + 1 dividend. I like this company, should've buy again when it dropped below $10, but instead bought another stocks.
I don't remember if I published before,...here is interesting analisys of EGL.UN

http://www.beatingtheindex.com/eagle...ome-investors/

Fo US oil/energy imho the best play is COP , I'm trying to add shares on every small dip.

P.S. I think you mentioned before CHE.UN , i also started watching this stocks, even placed a limit buy that never got executed, and it goes higher abd higher...

[londoncalling]

Perhaps a better time to pick up FRU would be later this year as the tax depletion will become more apparent. Stock price should go down if they cut the distributions which is a possibility as stated above. Fundamentally that shouldn't change anything other than share price, distribution and yield. It would just mean that the gov't is getting my money before I do.
I had noticed the recent run up. Hard to say if that was due to the rest of the market being bullish or not. I don't like the media attention that EGL has been getting as of late cuz IMO it only means temporary price appreciation. I also am concerned about the P/CF. What I do like about EGL is the beta and the P/B. I will definitely have to keep researching before I pull the trigger.

I took an original position in CHE about 9 months ago and have added to it a few times between then and now. It has recently climbed but I don't think I will sell this stock even if it goes higher. I am currently heavily overweighted in this position but my yield on cost is too high to let it go as I would just have to take a chance on something else. I have had bigger winners over the past year but on fundamentals this is my fav holding thus far. I would agree that its price appreciation may not make this a good buy right now.

I bought into LNV about the same time as you did and was trying to choose between it and PBN. Whoops!

If I recall we were both trying to deploy some DAY money.

[gibor]

I sold PBN at $16.42 last year with losses, when I hit 6.42 at fall, I was happy I sold it, but now who knows.....I almost at my selling price and I'd be getting dividends.... I never know what should i sell and what should I keep

[londoncalling]

Buying and selling is the thing I love/hate most about DIY investing. Since I am still a newb and I realize even at $4.95 fees can eat into returns with a small portfolio I don't trade positions that often. Also, I have yet to flesh out my selling strategy. For now, I just use mental targets and reevaluate. I know that I should probably start using stop loss orders for protection but I have found with all the recent volatility I would have sold many positions that I would not want to lose and the price would rebound in a hurry. I am still in accumulation mode so I can keep throwing money at the market. I must admit I have a hard time sitting on cash. I am getting an itchy trigger finger and will need to pull the trigger on a buy soon. I was hoping the Greece thing would be decided this weekend but alas, more political delays. In a sense I think the result is priced into the market and it seems to be a bullish spring and presidential election year which is also good for the market. Perhaps, I'll throw out some stink bids and see what I can get this week.

Cheers