SandRidge Permian Trust (NYSE:PER)

CAPS Rating: 2 out of 5

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Member Avatar afewgoodstocks14 (51.73) Submitted: 5/13/2014 1:31:59 PM : Outperform Start Price: $12.08 PER Score: -4.11

Div. (Yield) $2.43 (19.3%)
Current Yield . . . . . . 20.1%

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Member Avatar TSIF (99.96) Submitted: 2/23/2014 1:45:53 PM : Outperform Start Price: $11.93 PER Score: -1.83

One has to be exceedingly careful with asset based trusts, that have limited life. The dividends can be eye catching, but the fine print needs watched. There are several of these so far in the stratosphere in valuation that they will plunge rapidly leaving dividend eying, but unaware shareholders holding an empty bag.

SandRidge in particular is known for "monetizing" it's assets by forming Trusts, recouping development costs, and moving on.

This particular trust has been steady to date and dividends could see some upside as oil/NG prices hit highs. Overall, however, drilling/expansion for Trust holders will only be continued until March 31st, 2016, after which it's a downhill cycle in production and hence dividends, until the last one out turns out the light.

Timing is solid on this one compared to a few others that will decay away in the next few years. Set to last as long as enough flow bubbles up until 2031, I'm a little surprised at the low valuation given to it, compared to some others. Of course not all investors appreciate dividends, for some because of tax repercussions it's avoided. Another reason is that distributions can fluctuate much more than other dividend payers such as REIT's.

I've got a few CAPS plays in these, looking long term. Many didn't keep up with the 50-80% gain of the S&P, but I think that will be slowing.
LONG term hold, looking at dividend reinvestment. Easier to play on CAPS without taxes and fees.

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Member Avatar PatientJC (31.57) Submitted: 2/10/2014 3:51:02 PM : Underperform Start Price: $12.16 PER Score: +5.71

declining trust

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Member Avatar Eaglespot (< 20) Submitted: 11/14/2013 8:08:36 PM : Outperform Start Price: $12.48 PER Score: -8.71

New wells coming online in Permian and more tied to oil prices instead of natural gas.

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Member Avatar InveniamViam (72.32) Submitted: 8/30/2013 10:48:09 AM : Outperform Start Price: $12.70 PER Score: -20.67

Sandridge Permian Trust has 509 developed oil and natural gas wells located in Andrews County, Texas, and 888 oil and natural gas development wells to be drilled within an Area of Mutual Interest. This area consists of the Grayburg / San Andres formation in the Permian Basin in Andrews County, Texas. As of December 31, 2010, SandRidge held approximately 16,700 gross acres (15,900 net acres) in the AMI.The Underlying Properties consist of the working interest owned by SandRidge in the Permian Basin in Andrews County, Texas arising under leases and farmout agreements related to properties from which the PDP Royalty Interest and the Development Royalty Interest will be conveyed.

Production will be increasing, and so will the dividend, for some time to come. I like the fact that production is not winding down for some time to come and shareholders actually get a chance to participate in those new production wells. The trust distribution is paid quarterly, and last quarter totaled $0.585 per unit. At $14.60 per unit, the dividend yields approx. 16%, an excellent payout. I believe the shares are undervalued by approx. 50% given the increased production and estimated earnings of $2.68 over the next quarter. My sell price would be $22, although I may just keep my shares and sell calls against them if it ever gets close to my price estimate of $22.

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Member Avatar PhDFever (35.72) Submitted: 8/23/2013 10:19:07 AM : Outperform Start Price: $12.58 PER Score: -18.48

Great dividend yield and oil/gas will continue to rise,

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Member Avatar WCWlooky (22.84) Submitted: 7/27/2013 10:06:14 PM : Outperform Start Price: $13.12 PER Score: -20.72

The increased use of horizontal drilling for the production of Oil and Natural gas liquids will be money makers even if oil prices decline and they will make a lot if prices increase, Increases likely due to the never ending problem in the Middle East. Play the right companies right here in U.S. and cash in.

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Member Avatar blesto (31.86) Submitted: 6/17/2013 2:28:00 PM : Outperform Start Price: $12.63 PER Score: -20.15

Great current divi yield of 15.36% plus my GNVR: $21.90 to $22.23

GNVR(Graham Number Valuation Range) based on the Graham Number formula: http://wiki.fool.com/The_Graham_Number

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Member Avatar awallejr (83.92) Submitted: 6/15/2013 2:30:49 PM : Outperform Start Price: $12.58 PER Score: -19.70

yeild.

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Member Avatar ava5147 (< 20) Submitted: 5/28/2013 2:01:34 PM : Outperform Start Price: $11.79 PER Score: -11.64

good enough for CAPS

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Member Avatar Chemdawg (70.70) Submitted: 5/2/2013 11:16:06 AM : Outperform Start Price: $11.44 PER Score: -13.13

Tons of income and hedged at 100 per barrel for the next few years

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Member Avatar diggerdan28 (48.56) Submitted: 3/4/2013 7:28:47 PM : Outperform Start Price: $11.65 PER Score: -20.02

Still lots of production and a nice dividend.

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Member Avatar oviedopeo (51.47) Submitted: 9/25/2012 11:36:02 PM : Underperform Start Price: $14.91 PER Score: +52.35

Oil prices tending lower, after Isreal attacks Iran oil prices will go up,and stay up for a while

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Member Avatar lc8361 (< 20) Submitted: 2/24/2012 7:55:59 PM : Outperform Start Price: $16.95 PER Score: -70.66

per

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Member Avatar pninal (< 20) Submitted: 2/22/2012 2:01:44 AM : Outperform Start Price: $17.04 PER Score: -70.80

sd sdt per

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Member Avatar ajstudebaker (< 20) Submitted: 1/24/2012 11:40:17 AM : Outperform Start Price: $15.58 PER Score: -69.35

Great dividend. Output is weighted to oil, not natural gas.

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Member Avatar heball (< 20) Submitted: 1/1/2012 2:20:52 PM : Outperform Start Price: $15.36 PER Score: -74.48

Good for the next 29 years, even with the fluctuation of oil prices, I look forward to increased divs in the future.

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Member Avatar gimponthego (< 20) Submitted: 11/4/2011 10:15:02 AM : Outperform Start Price: $13.17 PER Score: -62.53

over 800 wells pumpin' black gold! Short and sweet crude!

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Member Avatar flarnrules (< 20) Submitted: 8/17/2011 10:09:54 PM : Outperform Start Price: $12.43 PER Score: -67.88

Dividends. Long on SDT also.

Results 1 - 19 of 19

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