I wanted to buy puts on them before business school started but never got the opportunity.

If I wasn’t in school and working, I’d probably be buying more of them! but its hard to know when the bottom really is.

Still, I believe the Canroys have a good long term outlook, as long as the global economy doesn’t disintegrate. Whenever, the economy comes back, so will energy demand, especially in Asia, which is still expanding. There is no additional supply in the works, so demand will once again outstrip supply.

The big question in the short term, is whether particular Canroys have protected their dividends by selling forward futures contracts on their production. PWE has sold almost all of 2009 and most of 2010 as of the 2nd quarter. Hopefully, the next quarterly report will show that 2010 is sold out and they are selling 2011 and beyond. This will buy time and allow PWE to keep paying its big dividends, which now yield over 20%. All the Canroys report the next 2-3 weeks. I will be reading their quarterly’s carefully.