The stock seems to have some major swings compared to other trusts.
I keep looking for news when this happens but there is usually nothing. Volume today is a bit weird.
Most likely some holders are looking forward to next qtr and the possibilty of Oil dropping back to the $40 to $50 range.
From my position I wouldn't mind the price to drop but for SBR to maintain the divvy. I would buy more for the increased yeild, and look to SP appreciation further down the road.
Maybe the seller has a 40 year outlook and believes that Obama will get the US off of oil by 2050.
Still lots of profits to be made in 40 years.
This drop is a gift. $75 dollar oil by the end of the year. Who says? Boon Pickens says. Why? Because Opec says. Opec sets prices. Period.
Yup, I wasn't looking at the date correctly. I don't think OPEC sets the price as they attempt to set the bottom as best they can. They weren't the ones prompting $142 oil, but they sure ran along for the ride...
Hmm, the press release says, "DALLAS, July 3 /PRNewswire-FirstCall/ -- Sabine Royalty Trust (NYSE: SBR), today declared a cash distribution to the holders of its units of beneficial interest of $0.29014 per unit, payable on July 29, 2009, to unit holders of record on July 15, 2009."
That says to me they sold days too early...
-that is record date. ex-dividend date is 2 days earlier. You need to learn the difference between the two dates. These sellers did not sell too late - they will get the dividend.
-anyway, price dropped $5 in last couple of days. Why lose $5 in order to get a 29 cent dividend?
Well I looked and didn't see a way to edit the above, so I apologize for the misspellings and grammar.
As to the second point about a few cents for a $5 drop, I would attribute no small part to the fact of 3 times the normal selling volume to the price drop, so it is somewhat self fulfilling prophecy...
But yes, if they were able to call the price drop and not be the cause then they are very good.