Seeking Alpha

When the grasping for yield goes bad: BP Prudhoe Bay Royalty Trust (BPT -5.9%) adds to recent...

When the grasping for yield goes bad: BP Prudhoe Bay Royalty Trust (BPT -5.9%) adds to recent losses, now off 27% in 2 weeks. The entire royalty trust sector has been shaken of late thanks to payout cuts at several (HGT, SJT, DOM), and the idea prices for these popular income plays have gotten far ahead of what they could ever pay out.
Comments (24)
  • dsholly
    , contributor
    Comments (8) | Send Message
     
    Gettin' really tired of BPT being punished for others' poor management.
    29 Aug 2012, 10:30 AM Reply Like
  • Rhianni32
    , contributor
    Comments (1998) | Send Message
     
    Gettin' really tired of people who have no idea how to evaluate land trusts place blame on others.
    29 Aug 2012, 03:33 PM Reply Like
  • chanthirani
    , contributor
    Comments (466) | Send Message
     
    Investors were investing in royalty trusts as if they were companies with high dividend yields without taking into account the fact that most of these trusts had a finite lifespan and after that lifespan the trust would expire worthless.
    29 Aug 2012, 10:50 AM Reply Like
  • viveksawhney
    , contributor
    Comments (2) | Send Message
     
    So you mean to say that BPT is dead like fish out of water ? How low can it go ?
    29 Aug 2012, 12:27 PM Reply Like
  • nicholas davout
    , contributor
    Comments (1660) | Send Message
     
    what you write is true but is irrelevant given that BPT has a projected lifespan out past 2025 & every year for the last 10 or so it has gotten deeper into its oil find only to increase its proven reserves & extend its lifespan & revenue stream.

     

    given the huge volume it seems to be fast money hedge funds selling to value investing mutual funds, sprinkled with naked short selling courtesy of the scum at the SEC.

     

    other oil/gas trusts are not having this sort of price action, look at PER, SDR, SDT, CHKR etc.

     

    its a lot of institutional short sellers jumping on a victim; hold & wait for clarity.
    29 Aug 2012, 02:16 PM Reply Like
  • Rhianni32
    , contributor
    Comments (1998) | Send Message
     
    apparently nicholas hasnt heard of "charge costs"
    29 Aug 2012, 03:33 PM Reply Like
  • nicholas davout
    , contributor
    Comments (1660) | Send Message
     
    I learned to read before you were a gleem in your fathers eyes kid.

     

    and yes I know they are increasing.
    31 Aug 2012, 10:40 AM Reply Like
  • Rhianni32
    , contributor
    Comments (1998) | Send Message
     
    then if you know about charge costs you should know that its not going to matter very much how much oil past 2025 there is.
    31 Aug 2012, 10:54 AM Reply Like
  • nicholas davout
    , contributor
    Comments (1660) | Send Message
     
    "price is truth"
    2 Sep 2012, 12:28 PM Reply Like
  • Clayton Rulli
    , contributor
    Comments (2508) | Send Message
     
    Keep going down so i can buy
    29 Aug 2012, 11:48 AM Reply Like
  • Au contraire
    , contributor
    Comments (6) | Send Message
     
    I just bought another 100
    29 Aug 2012, 12:29 PM Reply Like
  • nacnuddeerc
    , contributor
    Comments (70) | Send Message
     
    Where's the SEC? This has aspect of a naked short. BPT forecast maint this summer as it has the past few years. This is going on at PBT too!
    29 Aug 2012, 12:49 PM Reply Like
  • Rhianni32
    , contributor
    Comments (1998) | Send Message
     
    Yes its clearly a naked short attack. It has nothing to do with their distribution going from $0.14 down to $0.06
    29 Aug 2012, 03:35 PM Reply Like
  • AnnieA
    , contributor
    Comments (129) | Send Message
     
    Rhianni32, you must be referring to PBT. BPT's last distribution of was $2.31 Unit (July 20).

     

    This was down from April and January but up substantially from last October. Oil prices were down substantially from April and January too, though.
    29 Aug 2012, 04:31 PM Reply Like
  • Rhianni32
    , contributor
    Comments (1998) | Send Message
     
    AnnieA: Yes. I was replying to nacnudderc asking where the SEC is for PBTs drop.
    29 Aug 2012, 04:46 PM Reply Like
  • Clayton Rulli
    , contributor
    Comments (2508) | Send Message
     
    BPT is as oily as it gets. PBT is gas i thought.
    29 Aug 2012, 05:27 PM Reply Like
  • Julius Ferraro
    , contributor
    Comments (495) | Send Message
     
    I don't think you know quite how to evaluate a trust. These are not companies. They go to 0. Not saying nows its time however. Someone wrote a really good article about BPT and what it was worth. Read up on it
    29 Aug 2012, 06:06 PM Reply Like
  • Sittingcrow
    , contributor
    Comments (106) | Send Message
     
    Is Shane Blackman, the author of Seeking Alpha's column "You will Lose Half Your Money in BPT" behind this recent crash of BPT's stock price?

     

    Would the company make a statement, please, as to what is happening with BPT?
    29 Aug 2012, 05:46 PM Reply Like
  • Rhianni32
    , contributor
    Comments (1998) | Send Message
     
    They already did, in the 10-K for 2011 which is where Shane and Zweig from WSJ got their information from. The info has been there all this time for anyone and everyone to see yet everyone wants to blame the messenger and not the message.
    Seriously, how do you people even remember how to breathe?
    29 Aug 2012, 05:50 PM Reply Like
  • Sittingcrow
    , contributor
    Comments (106) | Send Message
     
    Shane is a kid with zero wisdom who shouldn't be a commenting on this site; I'm breathing even though he yelled "fire" in a crowded theater.
    31 Aug 2012, 12:28 PM Reply Like
  • Rhianni32
    , contributor
    Comments (1998) | Send Message
     
    Seeing as you now idea what is happening with your investment and don't know where to find the information, it makes sense you turn to insulting the messenger.
    You have no room to be telling others they shouldn't comment.
    31 Aug 2012, 01:09 PM Reply Like
  • Sittingcrow
    , contributor
    Comments (106) | Send Message
     
    Lady, you must be his wife. At least you're loyal (but don't know your oil).
    1 Sep 2012, 10:54 AM Reply Like
  • Bearsrally08
    , contributor
    Comments (75) | Send Message
     
    Lets get it straight. BPT has NOT announced a reduction in the upcoming distribution. It is thinly trade with only 21.4 million shares outstanding. So when a small number of large trust holders decide to sell the price gets destroyed. It has happened before. Warranted.....that is debatable.
    29 Aug 2012, 06:03 PM Reply Like
  • jmsymonds
    , contributor
    Comment (1) | Send Message
     
    Have owned BPT for more than ten years. Best investment ever for me. Aware that some day it goes to zero. Meanwhile, I will hold and keep banking the royalty check.
    30 Aug 2012, 07:57 AM Reply Like
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