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Energy trusts (SDT, PER, SDR) all take hits after announcing dividend and production cuts last...

Energy trusts (SDT, PER, SDR) all take hits after announcing dividend and production cuts last night (I, II, III), and Raymond James does not pass "Go," downgrading the group to Sell from Buy. These new trusts are misunderstood, says one trader long the names. The wells are still getting drilled and there's going to be volatility in production volumes. They're cheap by any metric and - unlike MLPs - they're debt-free, having no need to issue debt (or shares) to replace depleting assets.
Comments (13)
  • AlbionWood
    , contributor
    Comments (793) | Send Message
     
    If I didn't already have as much as I wanted, I'd be buying more SDR.
    1 Feb 2013, 01:41 PM Reply Like
  • johnsyn
    , contributor
    Comments (76) | Send Message
     
    Separately, analysts at Wunderlich downgraded shares of SandRidge Mississippian Trust II from a buy rating to a hold rating in a research note to investors on Monday, November 5th. They now have a $22.00 price target on the stock, down previously from $24.00.
    Drilling is up, actual production had been down, but oil prices for previous quarter barely broke $80. Now oil prices breaking $100, sounds like RJ stock price manipulation to me, already a bargain and know next quarter will be very profitable.
    (Not sure why author came up with a Nov 5 downgrade mention)
    http://bit.ly/11pnOQj
    1 Feb 2013, 02:01 PM Reply Like
  • NrgEqInc
    , contributor
    Comments (12) | Send Message
     
    The author of the attached 'new trusts are misunderstood' document highlights his/her belief that these trusts are cheap. "Cheap" is a cheap term in this case. The author's discussion offers no analysis of the potential future production stream, an assumption on energy prices, and ultimately no statement of what valuation should be, in his/her opinion. Do the work or find someone who has before you commit your funds. Caveat Emptor.
    1 Feb 2013, 02:06 PM Reply Like
  • castaic
    , contributor
    Comments (10) | Send Message
     
    Stopped out today. Kept divs in cash. May buy back in at lower price.
    1 Feb 2013, 02:51 PM Reply Like
  • Neil B
    , contributor
    Comments (41) | Send Message
     
    SDT is down only $.50. It's still on an uptrend that began in November when the stock hit $14.80. SDT had been going down steadily since it reached a high in February 2012. The pattern of declining dividends began at that time. While I have been interested in SDT, I do not buy a stock when the price and/or dividends have been on a steady decline. Whether now is a good time to buy will be revealed when the company announces its next dividend.
    1 Feb 2013, 04:23 PM Reply Like
  • JohntheOld
    , contributor
    Comments (168) | Send Message
     
    SD getting almost as much bad publicity and earnings as CHK. SD spending money to develop Mississippian wells - bringing in power that is not out there in the OK/KS grasslands. The oil goes to Cushing, and that price is not $100 - but the Cushing price should improve with pipeline construction and enhancement. Problem is, more lines bringing crude to Cushing...
    All in all, may be a good time to buy - as it looks like only a fool would touch them.
    1 Feb 2013, 04:46 PM Reply Like
  • TFCAB
    , contributor
    Comments (1957) | Send Message
     
    SD is trying my patience//////////////... up daily and not even that can give it a lift.......beyond dead money in my portfolio
    1 Feb 2013, 05:44 PM Reply Like
  • bdoeden
    , contributor
    Comments (63) | Send Message
     
    To all who have been knocking CHK and SD I suggest you read the following article re the consequences of hedge fund takeover of these stocks:

     

    http://reut.rs/14GvIEN
    2 Feb 2013, 11:18 AM Reply Like
  • Doug Meeks
    , contributor
    Comments (1174) | Send Message
     
    Elliot Gue did a great work up on PER, it's posted on SA. Search it out, learn all you need to know about PER.
    3 Feb 2013, 08:01 AM Reply Like
  • poclerk
    , contributor
    Comments (367) | Send Message
     
    Bought PER Wed. Feb. 6 @17.71
    6 Feb 2013, 10:47 AM Reply Like
  • Doug Meeks
    , contributor
    Comments (1174) | Send Message
     
    Nice.
    6 Feb 2013, 12:51 PM Reply Like
  • clumpkin
    , contributor
    Comment (1) | Send Message
     
    i''m an ole lady not willing to throw good USA $ after unsafe $. I'll stay w/SD for now.
    3 Feb 2013, 11:33 AM Reply Like
  • advzr
    , contributor
    Comments (6) | Send Message
     
    These trusts are volatile but if you hold on they will come back.

     

    Income is too hard to find for them to stay down long tern, especially with more retail buyers moving into equities.
    5 Feb 2013, 12:10 PM Reply Like
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