As an accountant student, TPL is a great Corporation. Sometime's simple is best in the complex world. TPL buy's back some of it's share's every year, but also increases it's dividend every year where feasable. TPL is shareholder friendly. Texas is taxpayer friendly. Oil, and natural gas is America's future. TPL is Texas's largest land owner in Texas. Texas is business friendly. TPL land's also have leasing ranching income. TPL has zero debt. In conclusion, with this new fracking thing, oil, and natural gas is America's future. TPL's over 900,000 acres of petrolium rich Texas land is...
Fortunately, in this deleveraging of debt economy, TPL has just a few employee's, which is a plus. I only hold corporation's with A+ balance sheet's in my ira account. SLW and RGLD are also simular, but of the pm arena. I hold those two 5% each as insurance only.
The only reason that I would not live in Texas though is because I am from Virginia. I love to surf on vacation on the "outer bank's" of North Carolina. Virginia is also business friendly. I plan to retire in low cost Martinsville, Virginia. Freshwater fishing,bluegrass music, and nascar.Also the blue ridge parkway(the mountain's) are just a few mile's away. gba
In my estimation "now" would be a very good time to get in at a reasonable price. None of us long term holders have any regrets, unless there are a few who purchased at the very top, which you usually wouldn't want to do with most stocks!
Great company! On a shorter-term basis, a lot turns here on the price of oil and gas, something almost impossible to predict. Their oil and gas revenues drive the company's cash flow.
On a longer term basis, you can almost be guaranteed that if you hold on to this for a decade, you'll own a much larger proportionate share of the company than you do now. The historic 1888 (I think) Trust governing the company MANDATES that they continually buy back shares! (Also, I think, each director can't be paid more than $3000 per year in fees per the Trust.) Each year I think they buy back about 300-400,000 shares. I believe they literally are in the market almost every day (other than quiet periods) buying back stock within the parameters they can, i.e., I don't think they can be the first trade or trade in the last hour/half hour (?), and the amount they can buy is governed by historic daily volumes. (So, I guess it's probably best to purchase shares early in the day or late in the day,although I'm not exactly sure of the trading rules.) The 900,000 acres of land they own also has clear value, although obviously much of it is in areas of Texas that are still quite sparsely settled. Not a trading stock. Something to put away for the family. In twenty years, unless Texas is wiped off the map and/or oil/gas prices fall to virtually nothing, the value/price of TPL should be higher. Remember, that if the price falls some, they're still in there buying back stock albeit at a lower price and vice versa, so there's a bit of a "dollar cost averaging" effect here, as well. Hope this helps some. Best for 2013!
Thanks for your insights! I read some of the old messages on this board and 2 things stood out.
1) The core group is a bunch of patient long term holders [no trader - what a pleasant change!]
2) No negativity and a willingness to share
Glad to have run into this company & board.
With a 52 wk trading range [$41 - $61] the current price of $54 is right in mid-range. I need to do figure out an entry point and tip toe in.