It is apparent that certain individuals are using Seeking Alpha to disparage this stock as well a other oil and gas royalty trusts, including but not limited to Sandridge Mississippian Trust I and II (SDR and SDT). These statements are full of misrepresentations and inaccuracies with the sole purpose of driving down the price of the stock. You can confirm this by viewing the same individuals disparaging the Oil and Gas Royalty Trusts (via TAG Team) on various dates during recent months.
Days that Sucking Alpha articles come out the volume seems to triple from average. I guess they can improve their track record by dumping shares after making dire predictions.
Where are the 'misrepresentation and inaccuracies'. All those points he raised have been discussed here on this board before. I haven't tried to estimate the NPV. however the factors he talks about are essentially correct. The distribution WILL drop to the 50c range this quarter due to expiration of the subordinate threshold. I pointed that out several times on this board. I would expect that to result in a correction of the unit price.
Why is it manipulation to point out true information?
"The distribution WILL drop to the 50c range this quarter due to expiration of the subordinate threshold. "
And will start declining from there on (unless the decline rate is outweighed by increase in NG prices which seems unlikely) as there is no more drilling from now on.
The basis points in the article are correct (and the significance of the exchange offer for NGT shares is a good point that I hasn't considered - get any NGT holders who accepted the exchange are rather unhappy now). However I haven't tried to produce a valuation like the author did, and his conclusion of $6.50 seems rather on the low side to me. But I think he is correct that the drop in distribution coming up will take people by surprise - whether it is now priced in or will result in a further drop remains to be seen. The initial WHX selloff went on for several days, so very likely this may continue tomorrow.