Q1 '13 oil was priced somewhere around 11.5% higher than Q4 '12. Therefore, the next distribution should be at least .72. .72 X 4 = 2.88. 2.88 / present yield of .1874 = 15.36. Present price of 13.89. 15.36 - 13.89 = 1.47. 1.47 + 2.88 = 4.35. 4.35 / 13.89 = a yield of 31.3175 over the next 12 months!
Bottom line - Even without any crisis drivers, (Syria, N. Korea cyber terrorism and Obama's uncanny inability to stop printing dollars), who really knows? Oil could go up 20% overnight. WHZ is an absolute steal. Buy all you can. Margin all you can. These situations are rare. Take advantage. When you see at least .72 for the distribution, you will know it is a lock!
Sentiment: Strong Buy
Printing money is exactly what we need whether it's Obama or Bernanke or both. In fact if there were more coordination between the Fed and treasury we could get out of our rut sooner. Of course the Republicans would find a way to screw it up.
Thanks for throwing out some numbers. Just a quick simple correction - Obama isn't printing dollars. He's spending the dollars (perhaps not all) that Ben is printing. Small technicality, I think your thoughts are in the right place.
Iwsritz-I agree with your assessments on most all you've said except for the part where you recommend margin....I usually never recommend margin....I want to own my positions out-right not fool around around the edges with undue-added risk...or otherwise I see the 11.5% average oil price in this 1st qtr. vs. 4th qtr. 2012 to be accurate-therefore hopefully we'll see a cash distribution somewhere in the .70-.79 cent range.