So those investors who were just looking for a decent dividend bought the trust and now are exiting after securing a fat trust payout. Hence the weakness in unit price after the ex-div date. Guy with Gulf Oil said today to expect oil near $50/bbl in the next year based on plentiful supply and just modest/decent demand in the US. Seems quite bearish. Interesting times in the oil patch.
BPT has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which I consider to be a relatively favorable sign. To add to this, BPT has a quick ratio of 2.31, which demonstrates the ability of the company to cover short-term liquidity needs.
"BPT has no debt to speak of"
no debt at all as US trusts are not allowed to have debt.
"to cover short-term liquidity needs."
Do you even know what a trust is? What short term liquidity needs are you talking about? All BPT does is collect royalties and distribute them to unitholders. The trust is not involved in operations (drilling, etc).
Thats not how dividend capture strategies work.
If you buy it for the dividend and sold on ex-div you are behind because you have to pay the taxes on the dividend. You have to wait for the price to recover.
The weakness in price could be because BPT is overvalued. Its not like that never happens with land trusts.
Agree, Vinnie. Sean Hyman, who has a rather amazing record forecasting stock and market movements--and routinely surprises skeptical commentators (he predicted Best Buy to go from $16 to $30 and Bloomberg people literally laughed at him--Best Buy now a bit over $30)--anyway, Hyman sees WTI breaking out in the next couple of months. The only way oil goes to $50 is if it peaks high enough to cause a recession.