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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Think4Yourself who wrote (45438)	5/25/1999 7:36:00 PM
From: ChanceIs	Respond to of 95453

Torch Energy Royalty Trust, A Pure Gas Play Hello everyone, I have been lurking for 9 months. This is a great board. Thank you all for the informed posts. I would like to bring your attention to the Torch Energy Royalty Trust (TRU), Yahoo profile: biz.yahoo.com This is a depleting asset trust. It owns the infinite production of some natural gas wells primarily in Texas. The trust keeps a small fraction of gas revenues for G&A expenses and pays the rest to the stockholders in the form of dividend. The dividend yield is currently 18%. As a stockholder, you can write off your stock purchase price at 20% annually. Finally the IRS allows a tax credit of approximately $0.32/year through 2002. The current price is $6 3/16. This comes out to an annual yield of 40% before taxes. When the wells run dry, or the asset value drops below $25 million, the trust will be dissolved. With a float of 8 million shares, this would leave roughly $3/share. It looks to me that production should last another five years. I bought just under $5 three weeks ago figuring that it would rise with NG prices. I have been pleased. This should be a good hold for a year or two. It's 52 week high is $7.688. Does anybody here see anything I don't? This will not be a four bagger like EEX, but if you want to pay margin interest at 7.5% it seems to be a great deal.