have latched onto a substantial stake in this
baby. I don't look for a fast ride up but rather a slow
grinding upward. Really a long term play given their
continued exploration(with some sucess I might add). Good
asset base should provide excellent long term value.
then the distribution is going to increase as
well. Remember, the May distr. is based on March
prices. Also, current capital spending is taken out but
you still should have two major positives going for
1) NG prices should be good for several
years & 2) little appreciated is volume growth. BR has
gone from 160 acres spacing to 80 !!! Will anyone care
when the distribution goes from 6 cents to 15 cents
per month ?
Historically, it pays to buy gas in late winter
of an exceptionally warm year. This year that could
be even more true. All over the country consumers
and businesses are turning to gas in favor of now
very high priced heating oil. Gas is a North American
supply market; and drilling is way down. No doubt global
warming is real, but there will be fluctuations, people
will need heat. Furthermore, gas fires more of N.A.
electricity generation every year. Eventually, hot summers
and electric cars will be as bullish for gas as cold
winters used to be.
Keep the faith Doc, this is low
risk given a little time!
if we'll test the highs again, but it did hit 10
this past week. I like the tax credits and the good
income stream. I have 3k units and plan to hold til my
cost basis is down around 0. When the tax credits run
out (2003) I'll look at the reserves left and make a
decision. The way I see it, I'm up 50+% just on price and
depletion and I like the income, so I'm not planning to
sell this year.
the high for this stock? Winter wasen't as cold
as forcast, natural gas not as expensive, and not
linked to oil prices. I finally sold the other day just
below 10. Held for years, sold about 7000 shares. Am
holding my other trusts that are more oil-focused.
< It occurs to me that, if this is correct,
there is no potential takeover by Alpine; it is simply
a lucrative investment for them.>
know how lucrative it will be; but I know for sure
that there can be no takeover. There is nothing to
takeover, only the right to receive overriding
Additionally, Robert Bruce, who manages Alpine Capital, has
some pretty quirky investment ideas; I don't think he
would by any stretch be considered a Buffet type
Alpine Capital is a group of investors led by the
Bass Brothers. Franco has put their oil holdings up
for bid unfortunately. I noticed today in the SEC
filings another group has accumulated a 5% share -
Capital Investments I believe. No wonder why this stock
I have heard rumors that Alpine actually is the
Canadian mining royalty house Franco-Nevada (FN.TO). The
story goes that they are, and have been, parking their
cash in SJT for both income and safety. It occurs to
me that, if this is correct, there is no potential
takeover by Alpine; it is simply a lucrative investment
for them. I do know that FN.TO is under fire from
their shareholders for investing in hydrocarbons and
nickel instead of sticking to 100% gold. Can you or
anybody else confirm that my mystery source is correct?