Bobco23

The Real Rationale Behind Current Supply and Demand for Oil and Other Commodities

FDG? Tough to trade that one. FDG was acquired by TCK October 31, 2008.

American Express to the Sell Block - Cramer's Mad Money (10/2/08)

Oil and gas royalty trusts are not just a liquidation of assets play where the only upside is price. The stocks sell on a discounted cash flow model of price times estimated or proven reserves. As price rises, the pool of reserves increases. This is the result of price now justifying bringing on-line, previously "unprofitable reserves" (higher cost to develop into producing wells) excluded in the prior cash flow model into the "useable reserves" catagory and a new cash flow model. In a rising oil and gas market the trusts shares move up on yield (distributions) and reserve increases.

When oil and gas prices decline, you have a great opportunity to buy cash flow and appreciation. Check out CRT, BPT, SJT, as well as PBT.

Amazingly price increases supply. I think I have heard that somewhere before.