If you believed that outrage article. WHZ shareholders will receice 31 more distributions. In order for the trust to be worth less than $10 distributions would need to average less than .33 each . The next distribution will likely be in the .70s as oil has averaged about $5 more this quarter. One reason production has been running above predictions is that the trust has been investing large amounts on exploration that has led to new production. They will be doing that for about two more years. After they stop these expenditures expenses will decline and that will offset the lower production. It is unbelievable that people are so gullible that they listen to such nonsense without doing thei own DD. If you sold today you made a huge mistake IMHO. Someone took your pants.
Your 'analysis' only applies if you think it is a reasonable investment to just get your money back in 8 years with no profit (in other words give someone an interest free 8 year loan). I guess you are new at this investing lark, huh?
Liza you are back! Many do not understand what is #$%$ Royal Trust. They look at it as a business where it is far from it. You buy the commodity, you get paid when the commodity is sold. When there is no more commodity the value of you unit is zero and the distribution is zero. Over the life of the trust the price variation depends of the index price and how much is sold. Naturally the production is always a mix of crude, gas , NGL and water. Not all geology are the same and always changing. The geology of SD produce too much salt water so less crude. That is what makes investing interesting.
I further agree and add to what torahlover0117 had/has to say...it is sad that someone who stated he is short the shares gets a podium as it were to be the only voice scaring all kinds of different folks including some investment managers who invest for others. I am one but I bought today as opposed to sold. I feel awful for those who were bamboozled by this one fellows-opinion...and ya know just like a*s-h@@@s everyone's got one!