Sabine Royalty Trust Is Risky Around Its All-Time Highs

Sep. 22, 2022 3:24 AM ETSabine Royalty Trust (SBR)7 Comments
Aristofanis Papadatos profile picture
Aristofanis Papadatos
8.19K Followers

Summary

  • SBR is thriving thanks to the multi-year high prices of oil and gas, which have resulted from the sanctions of the U.S. and Europe on Russia.
  • Based on its distributions in the first nine months of the year, SBR is offering an annualized distribution yield of 10.2%.
  • However, investors should be aware of the high cyclicality of SBR, especially now that the stock is trading close to its all-time highs.

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Last year, I recommended purchasing Sabine Royalty Trust (NYSE:SBR) for its attractive yield and its expected recovery from the pandemic. After a 30% rally of the stock, I recommended taking profits, as I

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This article was written by

Aristofanis Papadatos profile picture
8.19K Followers
I am a chemical engineer with a MS in Food Technology and Economics. I am also the author of 2 mathematics books ("Arithmetic calculations without a calculator" and "Word Problems") and perform almost all the calculations in my mind, without a calculator, making it easier to make immediate investing decisions among many alternatives. I invest applying fundamental and technical analysis and mainly use options as a tool for both investing and trading. I have nearly achieved my goal of early retirement, at the age of 45. In my spare time, I follow Warren Buffett's principle: "Some men read playboy. I read financial statements".

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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