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Lionel Yeo

 
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  • BP Prudhoe Bay Royalty Trust's Frenzied Sell-Off Got Me Interested [View article]
    long_on_oil

    We are already seeing the affects of the Baaken shale as WTI is trading below Brent. However, there is no need to fear. The US continues to import the majority of its oil and I don't foresee any major demand destruction in the future. I intent to make a big move into oil and gas trusts in the next 12 months, so everyone out there, please continuing selling! I'll like to get the price as low as possible.

    Dec 2 08:59 AM | Likes Like |Link to Comment
  • BP Prudhoe Bay Royalty Trust's Frenzied Sell-Off Got Me Interested [View article]
    Gents,

    Firstly, I am serious evaluating oil and gas trusts as a viable investment. As a partner of an Oil and Gas commercial consulting firm, I have seen many a field. The major problem with E&P companies is poor management who go into poor projects or dilute shares by issuing shares at absolutely the wrong time.

    Based on today's prices, BPT is yielding 12.60%. Assuming a 15% tax rate, we're looking at 10.71. You'll expect a payback of 10 years and everything above that is gravy.

    Yes, it does look at product is slightly declining, but assuming a 2.5% increase in the price of oil, this should still come out as a good investment. I especially like the clear flow through structure where every dollar goes back to the investor. Will be sitting around waiting to enter after fiscal cliff becomes clear.
    Dec 2 04:40 AM | Likes Like |Link to Comment
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