Your liberal Econ Teacher will NOT teach you anything re Taxes on your earnings!! Take time to learn this yourself on the internet. VNR is an MLP wherein the 17% distribution (not Div) is almost tax free. XOM has a 3.3% div taxed at 15% min. Bonds and banks interest is taxed at income rate, Fed 28% ++, Ca 9.5% every year. Make money by watching taxes. Your liberal Econ teacher only wants you to pay more taxes.
This oil price situation is tricky to call as it is not normal supply and demand. Technology is driving car milage up, fracking, etc. OPEC is getting killed as they need higher prices to pay their country's bills. Long term oil should be up. VNR is in good shape to make $, Divs, etc. The big Divs are great!!
Oct VNR report was 70% Natl Gas, 15% oil, 15% NGL. Natl Gas down to $2.93 from $4.25 (30%), Oil down from $100 to $50 (50%). Lots of VNR natl Gas hedged at about $4.25 for 2015. At Worst VNR should be down about 30% from Mid 2014 $30 per share. About $20 per share looks good to me. I did ok on my $13.34 per share buy last Wednesday.
Them "Dead Cats" can sure make money. My buy of $13.34 on Jan 20 pays a 18% plus div monthly. If its cut 50% it still great. Plus a big % gain to date with more to come. Glad you are still in school with a typical liberal econ teacher - My MBA helps me - keep studying, you will need it.
Foxy, The board is full of Puttin and Callin by folks that have no idea of the Oil Bidnis!! The Oil MLPs prices simply responding to the Price of OIL (About $50 today). If it goes up, MLPS skyrocket, if down, who knows. If MLPS hold distributions, they are gold mines. If half distrs they are half gold mines!! I think VNR is good at $20 with $50 oil. No more than $20 for a year. I hold some VNR cheaper, some higher priced, I only want the Huge Distribution for now.