Greg Pinelli

Distribution Drop May Spell Trouble for San Juan Royalty Trust

The author wouldn't buy and he won't short (Why anyone would even consider shorting a natural gas equity rather than simply shorting natural gas if one is considered a proxy for the other is beyond sense)...So? It should be enough to know that SJT is a "captive" entity..they have no effective control over future development or the timing or expene of reserve replacement. End of story. Much ado about less than nothing..since there are any number of alternatives. Canadian Trusts like PrimeWest and Shiningbank are also gas oriented..they have very aggressive developmental structures they are in charge. They've already been hammered below any reason because of tax issues that may never take place in several years. BGR..a closed end fund... sells at over a 9% discont to NAV and yields over 5.5%..and gives excellent diversity in the natural gas domestic market.