Baytex Energy Trust Is on the Price Downside

Baytex Energy Trust (BTE), a Canadian royalty energy trust, dropped 21 percent in two days after the Canadian government announced a new tax on income trust cash distributions. BTE is on a volatile downside because of the new tax and the recent decline of oil prices from all-time highs

As the price of BTE falls, its yield (10.2% on November 10) will go up making BTE and other energy trusts tempting to some income investors. But buying on the price downside is always tricky so beware. For example, BTE has fallen 24 percent since its high of $24.66 set on August 25. Also, before you buy any income trust, check with your tax advisor.

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Canadian Royalty Trusts Pay High Dividends
Canadian Royalty Energy Trusts Get Whacked Because of New Tax
buyupside.com Articles About the Price Downside

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Posted November 11, 2006.