Robin NY

Is Harvest Energy Trust's Premium Valuation Justified?

I have been an HTE stockholder for over 3 years. I have sold the stock and bought calls then exercised them.
I now own 2,300 shares for a simple play. Let's say that at $24 a share my value is $55,200 USD. The monthly dividend pays me $690 per month - 15% tax = $ 586.50. I am now spending about $250 per month for gasoline for two cars. This givies me $236.50 a month remainder. This remainder translates into 5.14 % annual tax free return after my gasoline is subtracted. Not a bad return for these times.

In summary, my gasoline is paid for and I get a 5% tax free return from my holdings in HTE.