BP Prudhoe Bay Royalty Trust (BPT +14.8%) is bouncing big after a disastrous three days since...


BP Prudhoe Bay Royalty Trust (BPT +14.8%) is bouncing big after a disastrous three days since WSJ ran a cautious article on the group, which noted that royalty trusts trade at a premium to the present value of their cash available for distribution. Someone must be seeing blood in the Bay, now finding the risk/reward characteristics of this long-term cash machine more attractive.

Comments (13)
  • stmbtdon@gmail.com
    , contributor
    Comments (14) | Send Message
     
    Yes, what happened for this totally stable stock to crash? One article with questions on the group? What group, this stock is unique!
    30 Aug 2012, 02:22 PM Reply Like
  • PoorBoyJohnny
    , contributor
    Comments (114) | Send Message
     
    I was shocked to see this stock drop 41+ points in a 3 day span. I think some big mutual fund company wanted to buy in but not at the high price of $117+, so a con artist made up a false story to scare people to sell, thus lowering the price so they could buy at a much lower price. Well, it worked, they got their lower price. Those of us that have owned this great stock for several years were not shaken by the drop. I know that the dividend will still be strong as I use that money as part of my living expenses in these retirement years. I will be concerned in 2027 when the wells start to dry up & the dividend gets lower. Until then-HANG TOUGH.
    30 Aug 2012, 05:00 PM Reply Like
  • casenundra
    , contributor
    Comments (22) | Send Message
     
    This stinks of market manipulation! BPT is mostly small investors in for the long haul for the large interest rate it pays. It takes a large firm to start a drop like this. I'm curious to find out who pulled the trigger to start this drop. Who stood to gain?
    30 Aug 2012, 05:02 PM Reply Like
  • Chazuu
    , contributor
    Comments (290) | Send Message
     
    I had held BPT for several years. When it started down a few days ago I sold at $102.56. Today I bought back at $82.99.
    I believe that it is at a reasonable price now. No one really knows how long the oil and gas will last or what the prices will be but it now looks like a reasonable long term holding for income investors like myself.
    30 Aug 2012, 05:12 PM Reply Like
  • grnsheet
    , contributor
    Comment (1) | Send Message
     
    Remember:
    The cash distributions, the consensus is the distribution is good till 2027. almost 15 years at an annual return of better than 10%. The article almost insinuated that the distribution was in danger now. Should prices rise in oil, anybody want to take bets on that NOT happening could mean the share value of the royalty should rise accordingly.
    30 Aug 2012, 06:06 PM Reply Like
  • havy1
    , contributor
    Comments (2) | Send Message
     
    Seems there was an article on SA July 12 outlining a view that BPT was then overpriced by $60/shr vs NPV....but the real value to that article was in the excellent counter-position comments provided by knowledgeable SA investors in royalty trusts (and BPT in particular)....worth a read by all BPT investors. Link: http://seekingalpha.co...
    The WSJ article followed, essentially parroting, the SA article, appears to me. Anyway, I'm delighted for the chance to add to my BPT position at these lower share prices!!! Long BPT & adding.
    31 Aug 2012, 03:40 AM Reply Like
  • Marek
    , contributor
    Comments (1516) | Send Message
     
    "Pssst....blue horshoe hates BPT..."
    31 Aug 2012, 04:25 AM Reply Like
  • tanderson7773
    , contributor
    Comments (2) | Send Message
     
    If you bought BRK 10 years ago, you would have paid 50 and today it is worth 85.
    If you bought BPT 10 years ago, you would have paid 15 and today it is worth 92.....of course you would have received over 80 dollars in dividends too..... BPT is a gem and the big boys know it and want to scare us home gamers out of it.
    31 Aug 2012, 09:57 AM Reply Like
  • PoorBoyJohnny
    , contributor
    Comments (114) | Send Message
     
    I love your comment 'tanderson'. I could not think of a stock to compare BPT. You picked a good one. I did buy BPT almost 10 yrs. ago @ $17.25 & as you already know, collected some very hefty amts. of dividends. My original investment money has already been returned & cash now is all 'FREE' money because I have this stock stashed in my ROTH IRA. I don't worry about the price drop as I have no intentions of selling. I will get concerned if the div. rate drops very heavy or they suspend it. That should not happen unless the price of crude oil drops to the $50 range & that's not going to happen either. The world economy is sloooowly turning around & when it takes off again & it will, watch the price of oil jump back over the $125+ per barrel range. I predict by mid to late 2013.
    2 Sep 2012, 04:32 AM Reply Like
  • Ford289HiPo
    , contributor
    Comments (1050) | Send Message
     
    Either BPT investors are a skittish bunch, or something else is going on behind the doors. For this stock to fall so far, so fast, and not return to previous levels is questionable.
    5 Sep 2012, 12:17 PM Reply Like
  • Uncle_RV
    , contributor
    Comments (2) | Send Message
     
    short selling can influence the share price. price goes down and the shorts get paid, hopefully by someone who looks at ROI. so watch the number of short positions. my chart shows 1.1 days of average daily volume or 275k shares sold short. that's a lot in a $90 stock.
    2 Oct 2012, 03:24 AM Reply Like
  • Ford289HiPo
    , contributor
    Comments (1050) | Send Message
     
    $90 is too high for BPT.
    2 Oct 2012, 11:11 AM Reply Like
  • Uncle_RV
    , contributor
    Comments (2) | Send Message
     
    i am greatly pleased with Bpt, and feel that 10/2/2012 presents a buying opportunity at the $93.09 close. the 9.9% dividend is a great safety net.
    2 Oct 2012, 03:25 AM Reply Like
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