On this board several have discussed PER. Some with disgust some with hope. As this stock closes in on 52 week lows I am looking at it. I have never invested in a trust before (I know it expires). So as a rule this stock should loose stock price the longer you hold it. Dividend is suppose to make up for it. That still makes me nervous. Doing some research on the company it looks like the sold one drilling area and reinvested in another. Thoughts?? I would not usually invest in something I do not understand but I have invested in some of the mortage stocks (nct,two, psec) lately and it is mind boggoling how fast they are rising (with a dividend payout too). Thanks in advance
Mud rackets, I have no idea if this post will appear (everytime I am away Yahoo seems to change the format but the ads are never interrupted) I have written before about the royalty trusts and have tried to point out the technical set ups. In summary, the trusts sponsored by Sandridge are struggling. The trusts seem to turn up a few weeks before their dividend announcements but they run right into resistance which is easy to see on the charts. That being said they also seem to bottom and become oversold. The way to deal with a position like this may be to average in when the stock becomes way oversold and ride the run up to the next div announcement and then sell as it hits resistance. Many of us always hope a losing stock will change color and escape resistance but that's why they say "hope is not an investment strategy" and "don't let a trading mistake become a long-term holding."
Remember also that the royalty trusts were very hot 2 years ago when they were first issued. Anytime you see a sector get hot because of high yields ( e.g. The mREITs, refinery stocks etc) be careful and take profits if you see the trend change. High dividend yields do not protect a stock from selling off.
I am going to stay with PER and wait for a chance to add if its RSI goes oversold.
PER has been a heavy cross for me to bare!!!!!.. My buy price is $19.75
I may sell today as the pain is intense
AS for good price to buy hard to say what that is as we are going down for now.--fish of cut bait as we say in the Army--RSI is 28 not healthy at all
Board members...most oil stocks seem to be taking a 'beat down' at this time.... however, with a yield of almost 15% I don't see how PER can retreat much more in share price (???)...of course, if they were to reduce the current distribution, it could get a lot worst...! $tagg...!