SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Paul Senior who wrote (25529)12/18/2006 11:03:54 PM
From: Spekulatius  Read Replies (2) of 78714
 
re SJT - this royalty trust looks overvalued regardless what MCDEP says. My argument is simply that a depreciating asset with a 7% dividend yield is expected to earn (everything else being equal) less than 7% because the depreciating rate need to be subtracted from the current yield to estimate the current return. So for a reserve life of 30 Years, i would tend to subtract roughly 3% to arrive at the current net return and 4% won't cut it for me.

I do not now MCDEP math but it's clear that SJT's gas won't flow forever. Of course returns could be higher if NG get's more expensive but in this case there are much more profitable investment around to profit from NG price appreciation.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News