+ About 5 weeks ago, the True Weatlh newletter featured this stock and it jumped $4 overnight + Then a large group of shorters tried shorting it + But it's a land trust with low liquidity, meaning it can be pushed higher with little money, and those that own it are buy and hold types + So that only leaves now-toasty shorts to cover or wet themselves + New shorts come in, rinse and repeat, as the "dumb money" keeps try the short side + And of course, you have those that will now buy since the stock is popping up on percentage gain screeners now. + Also, I'm sure the recent commodity(oil) inflation has helped a bit (although a 6-8% rise on crude shouldn't have come close to producing this parabolic chart)
It's not a "bad" stock. But it's pretty wild that it's priced this high and got here this fast (even the original newsletter feature said try not to buy this above 30 bucks).
If you want more info, look up Royalty Land Trusts -- this one has a 0.5% dividend and buybacks amounting to about 2.3% a year (PE around 44 now).
If land next to TPL is being drilled in the new wolfcamp formation. What stops TPL from getting much higher valuations like what happened in the Bakken and Eagle Ford??? I'm not sure that a simple short covering easy explanation is correct!
Before the market crashed mutual funds pushed it up beyond $60.00 per share, and then tried to dump all their holdings during a down trend in the market. It still has a long way to go before reaching its old highs, making it still bargain basement priced. PE is an unimportant factor for this type of stock!