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Sabine Royalty Trust Message Board

  • gohmertl gohmertl Dec 20, 2012 3:28 PM Flag

    Why SBR is a good stock to hold

    If in an IRA, the depletion paperwork is nil; THE ROYALTY TRUST holds lands held by royalty, that hold oil and gas in the deep shale plays in Texas and Louisiana; and take a look at who the two largest stock holders are, and have been for years.

    We are WAY oversold, imho!

    Sentiment: Buy

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Lucas Capital Mnaagement has added almost 200,000 shares of SBR.

      Sentiment: Buy

    • ...now $50., then $60., and more

      Sentiment: Buy

    • This comment does not make much sense. The value of any O&G US Royalty trust is what is left to sale. So the depletion does come into play. The gamesmanship is to keep track of the depletion and gamming the price of Oil or Gas. When the oil or gas price can no longer keep up with depletion, the unit price will dive. This is the case with WHX, BPT, GNI etc..
      IRA or not you are subject to the volatility of the unit price. What IRA does is isolate you from capital gain. If you trade within an IRA your trades are not reported. The broker gives you a 1099 that shows your IRA distribution which is taxed as ordinary income. So keep your own distribution as low as you can, and you control your investment tax. Not a bad deal!

    • "If in an IRA, the depletion paperwork is nil"
      True, but you also get no benefit from depletion in an IRA.
      Pretty silly to give up the depletion benefit just so you don't have to report it.

      • 2 Replies to lizahuang54321
      • This is not the first time Liza comment does not make sense. Usually Liza comments are relevant and interesting.
        The idea that:
        Quote
        "If in an IRA, the depletion paperwork is nil"
        True, but you also get no benefit from depletion in an IRA.
        Pretty silly to give up the depletion benefit just so you don't have to report it.
        End of quote.

        The price of the unit behaves the very same way in or out of an IRA. What benefit is there in the depletion, none. What is relevant is the market price of the oil or NG. This price is the determining factor that moves the unit price up or down. At a certain time, the price of oil or NG will no longer neutralize the depletion that is when I look at greener pasture, WHX is a good example.
        The only true advantage of trading within an IRA is to not have the capital gain tax liability. In my case I do not pay any taxes, by choice and in complete legality.

      • This comment does not make sense!

 
SBR
37.24-1.08(-2.82%)Dec 24 1:00 PMEST

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