Tue, Sep 2, 2014, 3:51 PM EDT - U.S. Markets close in 9 mins.

Recent

% | $
Quotes you view appear here for quick access.

San Juan Basin Royalty Trust Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • joantomwright joantomwright Aug 8, 2005 11:13 AM Flag

    SJT - all time high

    Somewhere along the line here the "greater fool theory" takes place as higher energy prices suck the life out of economic growth and whole sectors of the economy begin to suffer. Rising interest rates are already taking a toll on financials and some reit's and so forgive me please if I suggest that selling some of one's gains here, even if incurring taxes, may not be that bad an idea.
    At least set some reasonable downside target from here to do so.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • You have a right to your opinion. I don't think, however, that a breakout to new highs is the place that I should sell.

      I just was watching CNBC with some advisor who wrote a book; he was telling folks to short the oil market here. Wow...of course he might wind up being right and very gutsy, but more likely his followers are going to get run over by an 18 wheeler (oil powered of course).

      I tend to take profits when I have some indication that a move is faltering, *not* when it looks like a new move may be just getting started.

      Good Luck

      DD

      <<Somewhere along the line here the "greater fool theory" takes place as higher energy prices suck the life out of economic growth and whole sectors of the economy begin to suffer. Rising interest rates are already taking a toll on financials and some reit's and so forgive me please if I suggest that selling some of one's gains here, even if incurring taxes, may not be that bad an idea.
      At least set some reasonable downside target from here to do so. >>

    • I too have big paper gains on energy positions most of which I acquired like SJT for a reasonable current yield not really expecting the kind of CG I've earned(on paper) the last year or so. While I would hate to lose the gains, my big problem is should I sell what do I do with the after tax proceeds(remember a lot of the profits would go to taxes-best case 20+% and worse case 40%). I would not touch Reits or long term bonds(because of a fear of rising interest rateseven with a weakening economy) and if you are getting out of energy because you think the economy is going to slow down then the equity market is no place to invest in. If all you are left with is money market type returns that's not very attractive. There is no question that if energy prices fall significantly SJT and other energy positions will decrease in market value but I think SJT distributions will still be at a relatively attractive level. In addition, while OPEC has proven that it can not increase supplies sufficiently to prevent substantial increases in energy prices, I know for certain that they can reduce supplies to keep prices at what would historically be considered a very high level(high $40's at least). Now that they know the world economy can clearly sustain prices at that level if not higher why do you think prices will drop lower? (Remember they've only been above $50 for a very short time). I'd love to hear some other suggestions but for now I'm going to continue to hold my positions. I'd appreciate hearing any down side protection methods others are using(I looked into puts on energy put they were too expensive to be a serious option).

 
SJT
18.91-0.60(-3.08%)3:51 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.