Texas Pacific Land Corporation (TPL)

[couldbebetter]

norweger1979, Sounds like you did very well to have held on as long as you have. As much as I would like to the price of TPL fall it may not fall nearly as much as any of us would like. Unless oil prices take a large fall/ and stay there, along with a slowdown of activity in the Delaware Basin, TPL may see its earnings continue higher. One very big factor on future earnings will be the future corporate tax-rate. The newly established "full service water business" may go well beyond just providing water. The most difficult number to quantify is what should be the future PE ratio range. Will it be the historic 16-40 or the more recent 40-62? Right now I think 40-50 is about right. Anything under 40 should be bought and anything over 50 should be sold, at least as a general rule. TPL is unlike any other public company as: 1. No large controlling shareholder. 2. Management is not allowed to issue themselves stock/or issue stock for takeovers. 3. Net-income is mostly used to buy back and cancel shares. 4.TPL has zero-debt. I suspect earnings of $20-30 will happen sooner or later and a share price of $600-$1,200 will follow with a great deal of volatility in between!