"whichever comes first."
check again - it is whichever comes LATER.
Which could be a big advantage except that I doubt it will be because they will slow down production in order for the two conditions to occur at roughly the same time. Otherwise it would be like them giving money away.
"Using the average quarterly production the volume will be attained in 6 years. So much for the long life of this trust."
1: Declining production
2: Even if that happens, it doesnt matter. Its the LATER of the events that determine when the trust ends.
If your worst holding is net neutral (-20% to -25% but yields 25%) then you need some perspective about how terrible your situation is.
If you feel like a fool then use that as an indicator that you need to do more research and learn about your holding. Knowledge dispells emotion.
Excellent observation, but WHZ is not WHX in that the termination is based on a date or a total volume produced, whichever comes first. Using the average quarterly production the volume will be attained in 6 years. So much for the long life of this trust.
The price of oil is a real concern. The currant opinion is for the WTI to dip to $80 or lower by 2016. This will be particularly difficult for oil producer because the production cost will continue therefore will increase the percent expense versus sales. Another real problem is the new Senator Baucus tax law not enacted as yet. It calls for oil and gas producer to write off their drilling expenses over a longer period of time, 5 years or more. Presently the total drilling cost can be written off on the first year. In a fracking situation, drilling is most likely the number one expense, and on a continuous bases. In order to keep the EUR you have to keep on drilling.
Be patient. You will be rewarded with the dividends, in 4 years you will get all your money back, then you can sell or keep for another 3 years ov dividends or about $9
Based on my understanding, the expiration date for this trust is in the 2021 time frame, so we should have lots of life left in this one. My fear is that the price of oil is falling and that the profit margin will suffer. I still think this trust will be profitable, but it may be a year or two before we see that profit, assuming that fracking in Balkan remains affordable.
You have to look at the cousin WHX. They both look similar at the same time line. After the IPO the trust loses $4 or $5 and settle down for 3 years or so. Toward the end life it loses another $4 and slowly goes down to the end anniversary. WHZ has enter its middle trading ways.
Last quarter the low was $12.55 the high $14.34 or $1.79 difference. I believe WHZ curve is getting similar as WHX. It will go up/down $2 each quarter until the last 6 quarters of the life of WHZ. You just have to catch the price at the right time.
I know, it gets old real quick. This one has held up better than most the other ones in the group. May have a couple more weeks of this #$%$ before it can get turned around for the next dividend.
This is now the worst stock I bought this year. I bought for the high dividend return but what good is that if the price continues to sink every day? I understand the tax reasons for many people selling but it shouldn't be dropping this much; unless I'm missing something. I'm keeping my shares, but I feel somewhat like a fool for doing so.
its a gamble, there could be more selling this month, taking losses here to offset gains. how low investors are willing to sell is unpredictable. next divvy is still 2 month away. I am watching too, will add at one point.
Got out of WHX with a nice profit and was going to get into WHZ.. It's been doing nothing but sliding for that last 5 sessions. Looks very tempting today, with a tight stop at the 52 week low..
Yes, but how stupid. A vehicle yielding way over 20% and you are saying current owners worry about trade-off effects because the 10-yr is rising toward 4%? The yield effect should impact those vehicles with yields closer to the yields available with "safe" investments. This one has nothing to do with "safe" or "normal yield." It is entirely about the price of oil and gas, and how much of those things, from now till 2021, are left in the ground, to be extracted and sold, profits on which flow (mostly) to us.
as the 10 yr goes up...........ALL high yield sells off............this is fact..........not an opinion..........check the last decade and the flow in and out of the 10 year............
I agree there is never one rule. By enlarge all xdates are within 2 or 3 weeks. All stocks including trusts and MLPs go down, at list, the amount distributed, plus some depending on the followers. 8 out of 10 will follow the market. I am ok reading the market, I just am too greedy!!! LOL
now the current lows don't apply to whz alone, other trusts seem to be acting in a similar fashion. there never is just one rule to apply. I try to look at the broader picture and take my clues from there, plus I allow myself room to move either way, buying or selling depending on market conditions.
I cant see much further downside from here, but there is always the possibility of surprise.