Permian Basin Royalty Trust (NYSE:PBT)

CAPS Rating: 3 out of 5

The Company's business is to collect the income attributable to the Royalties, to pay all expenses and charges of the Trust, and then distribute the remaining available income to the Unit holders.

Recs

1
Player Avatar mbkelly55 (31.85) Submitted: 11/8/2008 1:17:16 PM : Outperform Start Price: $14.65 PBT Score: -140.57

This is a solid energy stock paying reliable dividends on a monthly basis. They have had no problems doing this through the ups and downs of the energy market and are not likely to in the future either. The only possilbe drawback is that this is set up as a Royalty Trust here in the United States and is limited by U.S. rules which do not allow them to buy more properties and add to the Trust. If they run out of oil on their properties - they are all done. They should be good for at least five (5) years before that happens though. Re-Investing the monthly dividend should make for a nice long-term profit no matter what else happens politically here in the U.S.

Member Avatar pdales (< 20) Submitted: 3/31/2013 10:20:03 PM
Recs: 0

I purchased PBT in August 2011. It is down 44% from the cost of purchase. Are the assets depleting faster than planned or is there some other reason why PBT has decreased in value so quickly. I am trying to determine whether to sell....or whether there is any hope of an increase in stock price. Any thoughts on this?

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