Harvest Energy, that I own in my RRSP, announced their 2008 results, as well as a 87% reduction of the distributions to $0.05 per month.
So I was too optimistic yesterday when I purchased more units of the trust. I was estimating that the cut would be to $0.10 per month. Now, based on my purchase price of $5.83 yesterday, those units are yielding 10%. The units have falling quite a bit this morning, hitting a low of $4.50 (which yields 13%).
I figure that as long as the price of oil remains in the $35-45 a barrel, the trust units will trade in a $4-$5 range. The question is, how long will the barrel of oil stay that low? I still believe that over the long term, this is a good investment. It still hurts, though!
Well, I already knew that I'm not good at timing the market...