read what the ECA for you overreacting fool.
Seeking Alpha has a motive and they have have succeeded in scaring you lemons into panic.
Read the company ink not the fearful overreacting noise these people you tryst.
Thanks for letting me buy you highly blood on the street shares. Panic why . you had options.
Hey I'm long. But I need to call BS on you. ECT has no website. I do think the SA article is worth what you paid for it and has succeeded in making money for a short. The stock is now very cheap. What people read in the article was purely an opinion. All the guesses about dividends, depletion rates, reserves, etc people took as facts are merely the author's opinions. There are lots of dumb retail investors involved in all stocks. But when this stock as at $15, there were plenty of smart investors in there too. Down at $10, the stock is probabaly a gift.
" If you sell this year you will not have to pay taxes on distributions you got last year."
Yes, you would. Read the article I provided you and note the section on recapture.
That is the term which describes the payment of tax when you sell on the distributions you received in earlier years. Recapture. It's explained in the article if you bother to read it.
Liz, you have NOT explained why you still own it. If you sell this year you will not have to pay taxes on distributions you got last year. And even if you did it wouldn't be as much as the amount you're going to lose if the 8k is anywhere near being correct as to the worth of the remaining natural gas. The ONLY was it makes sense to own this trust is if you believe the remaining natural gas will be worth far more than the estimate in the 8k.
Liz, Why do you own Ect??
I bought it at the IPO (price around $20 but collected $6 in distributions so far). Clearty when I purchased it the information in the prospectus was all we had to go on at the time. Also at that time NG was $5 and nobody knew the trust would spend its most productive first years in a $2-3 NG price environment. So that is how I came to own it. I already explained why I am not selling now.
"Liz, you still have not answered whether you believe the 8k."
Believe it? It is fact as based on the last year's NG prices and the current best knowledge of the well performance by the reserve engineers. It's not a question of believing it or not. That doesn't mean that the estimate will not change when they do the same estimate next year.
"I believe they lowball to protect themselves from legal action "
They are required by law to use the trailing year of NG prices.
If NG remains at a higher level in 2013 then next year's assessment will be higher (assuming the well production has not collapsed by then).
Liz since you're the acknowledged genius on this site could you please inform the board if you believe that Ect will pay out $4 a share in the remainder of its life?? That's what the 8k implies. I believe they lowball to protect themselves from legal action in case they pay out less than some folks are looking for.
"All the guesses about dividends, depletion rates, reserves, etc people took as facts are merely the author's opinions."
Nope, they come from ECT's own 8-k filing (albeit based on last year's NG prices which have since improved and may improve further).