Glenn Simon Inc., Suite 1217, 5328 Calgary Trail NW, Edmonton, Alberta, Canada. Tel 1-888-780-5940 Fax 1-888-276-4517
www.glennsimoninc.com email: info@glennsimoninc.com
March 15th., 2016
Volume 20, Issue 5
Dear Friends and Partners,
Although the majority of news coming out of Alberta lately has been negative, and surely more is one the way, Alberta is never idle. There is substantial evolution taking place. Despite having a dose of ‘it’ll get worse before it can get better disease’, we have the downtown core growing and a tireless energy sector striving for innovation.
I was part of a small group that attended a bespoke economic presentation from the government of AB last week. The major takeaways were that we (Alberta) need to continue strategically diversifying (I say continue, because we’ve been diversifying for 20 years) our energy sector. Alberta is a great innovator but ideas need to be focused on a collective goal, not independently. The guiding target that was presented was to reduce oilsands water consumption by 50% before 2030. This idea has been discussed before, but I feel there is an urgency to work collectively on this goal.
Focused diversification within the energy sector and on a measurable target, makes sense. By reducing the amount of water used in extracting oil, we can decrease cost and further reduce environmental impact.
Until we make this change (and others) we remain increasingly vulnerable to low oil prices, political agendas and (for right or wrong) environmental critique. Jump to one idea here.
Prince Rupert Bungalow: 2 Legal suites, cash-flow central Turbo charge your portfolio. Great, 2-unit bungalow, 7 minutes from downtown; a winner to add to any portfolio. 1952 built, meticulously maintained. Terrific access to local amenities in mature Prince Rupert. New furnace, electric panels and suite upgrades. This property has a legal 2 bd suite down and 3 bd on the main, plus over-sized single garage and pad. This property has a tried and true layout and is built to last. Purchase price includes reserve fund and small renos to make the property shine! This is a turn-key deal. Excellent access downtown and in the highly rent-able and desirable neighbourhood of Prince Rupert.
Comes complete with great tenants making this a totally turn-key property for you. Prince Rupert is a mature neighbourhood that is convenient for tenants working downtown and attending NAIT. HUGE upside potential due to the great purchase price, strong economic fundamentals and the proximity of this property in relation to Edmonton's desirable growing core.
Purchase price: $385,000
Total Investment: $88,500
Your Estimated 5 Year Profit $54,760 Your pre-tax Total ROI is 62% or 12% per year
These 2 suites rent for top dollar and have everything arranged, including financing structure and incredible tenants. Your investment includes: impeccable tenant selection, financial analysis, professional inspection, insurance, financing set-up, legal fees, basic accounting, reserve fund, CMA, bi-annual statements, strategic market planning to ensure successful entry and exit, plus much more!
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How the West was done: Plummeting oil prices and political change cosier to stall Canada’s growth engine
By Claudia Cattaneo, Financial Post Media, March 2nd, 2016
As painful as it is, there is much to be learned from Canada’s economic decline, such as: We are getting lots of what we (and many of our politicians) wished for and finally getting a clear picture of what Canada looks like without a strong oil sector.
Partly due to the oil price collapse, partly by the design of new governments in Alberta and Ottawa, oil no longer fuels the economic engine. Climate change policy has won the day and the oil sands’ industry has been kneecapped.
Proposed bitumen pipelines have been gutted by organized campaigns and red tape. The West’s economic leadership has been quashed, and with that — for now — its political clout. THIS ARTICLE
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Rob Roach: Alberta’s identity is built on growth for good reason
By Rob Roach, Edmonton Journal, March 10th, 2016
When it comes to population growth, Alberta is an outlier.
Our GDP per capita is among the highest in the world, but our population growth rate is more in keeping with relatively poor places such as Ethiopia and Nigeria.
While the populations of wealthy countries like Japan and Germany are shrinking, Alberta’s average annual population growth between 2004-14 was over eight times greater than in the European Union and almost three times the rate in the United States.
Alberta’s population has increased by 1.2 million people since 2000 — roughly equivalent to adding another Calgary or Edmonton to the province. GRAB THIS STORY
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Why reducing water consumption is critical to Oil Sands competitiveness
Despite considerable progress, thermal oil sands producers desperately need to reduce water consumption. Are solvents the answer?
By Jesse Snyder, Alberta Oil, March 2nd., 2016
For the people who operate and manage steam-assisted gravity drainage (SAGD) projects, oil is almost treated as a by-product to what is actually their primary concern: water. Indeed, SAGD operations are basically just “water facilities with an oil problem,” according to Darren Massey, a programs leader at GE’s Customer Innovation Centre, a Calgary-based facility where energy companies try to tackle the fundamental challenges inherent in developing heavy oil. “Water is really the main resource that you have to manage here,” he says. “The energy that you put in to generate that high-temperature steam accounts for a substantial portion of your total costs.” READ MORE HERE
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Your success continues EVERYDAY, let me help you build for tomorrow.
“Perseverance is failing 19 times and succeeding the 20th.” -Julie Andrews
Warm Regards,
Todd and Danielle Millar
