Argent Energy Trust (AET.UN.TO)

(Market Call Minute) It is expensive and potentially a leveraged balance sheet.

He can get US exposure with smaller companies. He doesn’t need to use this one to get into the US. This is one he would use if he needed the high yield of 10% but it will go sideways in terms of growth.

This is one of the attractive trusts and probably the reason is because of where they are located in Texas. They are getting a price that is very consistent with Louisiana light sweet, which trades at a premium to WTI.

Has been a lot of confusion on this in the last 5 to 6 days, primarily because they issued additional units to buy some more properties in Texas and southern Oklahoma. Units were issued at $9:30 versus the $10 IPO price. Expects to see production growth as well as NAV growth. Very decent value.