Permian Basin Royalty Trust (PBT)
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
Weatherization
(< 20)
Submitted: 3/6/2008 8:21:57 PM :
Start Price:
$18.50
PBT Score:
+14.38
At this price PBT in my opinion is overpriced. While it does pay a great dividend, I feel you risk capital depreation if oil prices drop.
Your dividend and shate price could drop together, especially if the USA experiences a recession.
Recs
heartvet
(45.95)
Submitted: 7/4/2007 6:36:10 PM :
Start Price:
$10.51
PBT Score:
-55.40
The price of oil is likely to remain high. Permian Basin oil is a relatively steady income from a reliable field. The nearly 10% return is nice and buffers volatility. Longevity of reserves is a long term concern. PBT is one of the few energy royalty trusts that is primarily oil based and not Canadian, where tax issues for US investors are problematic.
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