North European Oil Royalty (NYSE:NRT)
The Trust receives various percentage royalties on the proceeds of the sales of certain products from the areas involved. At the present time royalties are received for sales of gas well gas, oil well gas, crude oil, distillate and sulfur.
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5 STAR, Small-cap, dividend payer
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great growth potential
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Low P/E. No debt. Good Margins. Good dividend.
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N. Gas + Big dividend = Buy
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earthStrapped has a good summary here:
http://caps.fool.com/Pitch/NRT/2040774/this-stock-is-really-three-pla.aspx
The trust has been paying an average dividend yield of 8.3% for the past 5 years, the forward yield is 13%. In at $24.
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Given the volatility of the oil sector, dividends historically has been it's strong point.
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Great div., low price.
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This stock is really three plays. FIrst, it is a long call on natural gas. Second it is a short call on the dollar. Third, it is a speculative long call on unproven reserves in the Oldenburg region of Germany.
The value of this company is directly tied to the value of the royalties it will receive on natural gas reserves that it owns rights to. The future value of these royalties is dependent on the price of natural gas at the time it is pumped and the amount pumped. At present, this company has proven reserves of 38.254 billion cubic feet, and earned $26.7 mil off of 3.6 bcf pumped last year (1.4 bcf were added to the proven reserve last year) giving the current proven reserve a value of about $285m or $31.04 per share at todays prices. The trust pays out 100% of the royalties after administration fees of approximately $1m per year.
I wouldn't expect this stock to greatly outperform the market, but it is a way to hedge the dollar while taking advantage of what could be a "lull" in the price of natural gas.
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A great dividend with about 3.41 earned per share, this stock is a great investment. Excellent long and short term hold. Great return on invested capital as well.
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this oil and gas holding company should benefit as the exploritory, development and production capabilities of its representative companies began to generate more from the riches enjoyed the the firms backing their holdings
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A run into the 40s is likely over the next few months.
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Just something I am watching
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