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Whiting USA Trust I Whiting USA Message Board

  • dbandgb4 dbandgb4 Apr 3, 2013 4:57 PM Flag

    going up

    can someone tell me why whx is going up so much in the last couple of days?

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    • Because this is like a biotech stock now. Economic news means little here with the limited lifetime of the trust. So it will tend to move against the market. It becomes kind of a hedge. The same happens with startup biotechs that have no income prospects for years. If the market goes down due to macro economic news, they tend to go in the opposite direction simply because they are not economically sensitive. So yesterday the market was down due to jobs numbers and stuff like that. Almost everything went down but WHX went up because it is not impacted and the other money had to go somewhere.

    • They said on CNBC today that one of the most popular searches on Google is for high dividend yield stocks. WHX shows up near the top of any of those lists. I think it's probably just a pile of unsophisticated investors thinking they're actually getting a 35% dividend yield. Of course the indicated yield is ridiculous, because this trust terminates in 2 years so in reality it's not a dividend it's just returning some of your money and incinerating the rest of it, but there's obviously a bunch of people that don't realize that yet.

      • 1 Reply to jackfoley159
      • Yes jack everything you say is true, and if you are a long investor, by all means don't buy whx, but what you are not saying is that the stock is a see saw, and here is why, the banks are paying less that 1%, and people are looking for a fast buck, so they see the 36% yield and go short term for the quick gain and sell, they pick up a nice 8 to 10 %, and cash out and move on, and I like that, so I get in at the bottom of the cycle, ride the up tick and drop the day before the ExDIV, so far this year i am up 35% in cash. Now I know the cycle is coming to an end, and this not a long term play, but it is fast cash, this cycle I bought at 5.50 on 21 feb, today it closed at 7.18. plus i still see upside as the exdiv date gets closer, no i don't hate money but there is still a play here its just not yours..

        Sentiment: Buy

    • Liza's explaination is well put. We are also reaching the one month till distribution earn date (Q1 2013: Feb 13) timeframe, so that fact should also contribute to a climb toward $8.50. Be cautious, though, as WHX often reaches it's peak up to a week BEFORE the earn date when people begin to take profits instead of earning the dist.

      It sure would be nice if broader economic issues broke that trend this time, but don't expect that.

      Sentiment: Buy

    • if you simply listen to what r.c. 1000 and liza have said, you will make money. if you don't,
      you won't. life is as simple as that. you snooze you lose.

      Sentiment: Buy

0.60610.0000(0.00%)Mar 13 3:56 PMEDT