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Another interesting company that I think I will take a flyer in if I can figure out how to buy the stock is Talison Lithium (TSX - TLH) Don't know if I can buy off the Toronto Exchange.
Talison Lithium Inc. TSX - TLH is the world's largest primary lithium producer - production from its Australian operation fills roughly a third of the world's lithium demand and supplies 75% of Chinese demand.
Talison began trading on the Toronto Stock Exchange September 22nd 2010. The company's initial public offering (IPO) raised $40 million. An additional bought deal financing of $80 million, including over allotment, was recently announced. This money is being used to nearly double production at their Greenbushes lithium mining operation in Australia, and exploration at their new Salares 7 project in Chile.
The Greenbushes Lithium Operation has been producing lithium for over 25 years. The mine is located 250 kilometers (km) south of Perth/Fremantle - a major container shipping port - and 90 km south east of the Port of Bunbury - a major bulk handling port - in Western Australia.
Talison, as the only pure producing lithium play, offers potential investors many attributes:
Unique exposure to both mineral (hard rock) and brine sources of lithium
Talison is the primary lithium supplier to China - China is the largest and fastest growing consumer worldwide
Growing demand for lithium from traditional uses and new applications
Proven and experienced leadership
Highest grade lithium mineral resource in the world at its 100% owned Greenbushes operations
25 years of lithium production and sales history
Well established and diversified global customer network
Low cost, rapid plant expansion currently in progress
Salares 7: prospective brine exploration project in Chile
Potential lithium carbonate plant in Western Australia
Talison is the largest lithium producer globally by sales since 2009
Another high yield stock is PVR which, at $28.16 is providing a dividend of 6.68%.
Penn Virginia Resource Partners, L.P.(PVR) is engaged in the management of coal and natural resource properties and the gathering and processing of natural gas in the United States. The Company conducts operations in two business segments: coal and natural resource management, and natural gas midstream. During the year ended December 31, 2008, approximately 84% of its operating income was attributable to its coal and natural resource management segment, and approximately 16% of its operating income was attributable to its natural gas midstream segment.
You're probably right..........
Very nice! ..... For now...
Just hope this pumped up market isn't all an illusion caused by the Feds printing presses..... And I thought Hartcourts presses used to work overtime.... The f'n Feds had to install cooling systems and hire subs to keep up....
"90's" Tech bubble.....
"00's" Housing bubble....
What's next? Monopoly money bubble?
At this rate MVO is returning a dividend of over 20% based on the price we paid for it.
The dividend alone should return our entire investment in a little over 4 years and the total value of the shares will be pure profit.
MV Oil Trust makes $7.8M distribution
Austin Business Journal
Date: Monday, January 10, 2011, 8:42am CST
Related:Energy .
Austin-based energy partnership MV Oil Trust (NYSE: MVO) announced plans to distribute $7.76 million net income to shareholders.
The distribution covers profits the oil and natural gas trust made during the fourth quarter last year, ended Dec. 31, 2010. Unitholders of record on Jan. 18 will receive about 68 cents per unit payable Jan. 25.
The company netted about $9 million on $16 million gross proceeds. The amount includes about $1.3 million MV Partners LLC received in claims from a bankruptcy case SemCrude LP and Eaglwing LP filed in 2008. MV oil property operators Vess Oil Corp. and Murfin Drilling Co. Inc. were due money for oil sold to the bankrupt companies.
MV Partners LLC trust owns interests in oil and natural-gas properties in Kansas and Colorado. It distributed about $6.6 million in dividends the same time last year.
"The trust had proved reserves of 8,800 thousand barrels of oil equivalent at December 31, 2009, from which it produced about 780 thousand barrels of oil equivalent, giving it an estimated 11.3 years of remaining reserve life.
"However, according to the trust agreement, the trust will terminate on the later of June 30, 2026 or when 11.5 Mmboe (millions of barrels oil equivalent) have been produced.
"To date, less than 4 Mmboe have been produced over the five years since inception in 2006. At the current rate, the trust should have about 10 more years before it expires.
What Does 2011 Have in Store for MV Oil Trust?
With a barrel of crude oil trading north of $90, I think it may be time to discuss a little known stock called MV Oil Trust (MVO). MV Oil Trust is a somewhat complicated stock that is largely owned and controlled by two companies named Murfin Drilling and Vess Oil.
The two companied joined forces in the late 1990's to form MV Oil Partners, which helps drill and produce hydrocarbons from Trust lands in both Kansas and Colorado. MV Partners and MV Oil Trust have an interest in lands located in the mature oil and gas fields of Trapp, Hansen, and Bemis Shutts. The majority of these fields are located in the El Dorado area of Southwest and Northeast Kansas.
As mentioned previously, oil is currently priced at about $91 a barel. In 2006, when MV Oil Trust filed their IPO, the trust was under hedge contracts till December, 31st 2010. The hedge contracts forced MVO to sell approximately 80% of their hydrocarbon production at $65 a barrel. Since oil is significantly above the hedge price of $65, it's worth asking what the value of MVO may be in 2011.
First let's look at the historical production of the trust from its inception in 2006. All charts I present were put together by myself using SEC filings and prices based on the market close on 12/31/2010.
The historical quarterly average for hydrocarbon production has been approximately 241,000 barrels of oil equivalents, which is predominately composed of crude oil.
Second, using the average historical hydrocarbon production rate and average cost of producing the hydrocarbons, we can produce some relatively reliable distribution projections at varying prices for a barrel of crude oil (see chart below). It should be noted that while the current crude spot price may be $91, MVO crude is generally sold off at a $7 discount to the spot price. This cost is incurred for transporting the oil from the well head to the purchaser. Please take this fact into consideration when reading the valuation (e.g., $92 spot price would essentially be $85 oil to the Trust).
Now that we have the distribution projections, let's take the analysis one step further and guess what an appropriate valuation would be for the trust based on these distribution rates.
Oil Trusts can be valued in several ways, one way to value them is based off of the present value of the remaining oil reserves. This valuation method is appropriate in some cases, particularly if a trust has a limited time frame before it's dissolved. However, according to the MVO prospectus the trust will be dissolved no earlier than 2026. With the trust's demise set so far off into the future, it seems more apropriate to bench mark MVO against several of its peers which are generally valued based on the distribution yield they produce. If we look at this Oil Trust Index I created using prices from December, 31st 2010, we can see that most trusts are valued at around a 7% yield, with a price to yield ratio of approximately 15.
So, if we apply the same yield valuation to MVO, what do we get?
The results of this analysis indicate that the trust may be under valued given the current price of crude oil, particularly given that most trusts trade at a 7% yield. I have highlighted in red the $85 a barrell oil line to show where crude oil is today after the $7 discount is applied from the spot price. Furthermore, I've bolded the cell where MVO could trade if investors value the potential annual distribution at 7%. The bold cell indicates that a likely value for MVO in 2011 could be $60 a unit if oil stays in its current price range. The yellow cells on this spreadsheet indicate where the trust is trading today (in the $40 range).
These numbers were put together using data from previous SEC filings, and assumptions were made about future production rates and the future price of crude oil. I encourage investors to do their own due diligence before deciding whether a stock is appropriate for their portfolio.
Could have also sold in Sept '09' for a 200+% gainer..... Coulda, woulda... Shoulda... Motley Fool's about as good as Cramer...... They both suck! lol!
The only bad one we had this year was AIB and we knew it was a gamble when we got into it.
And we could have had a lot more shares of MVO under $20......
Ah well..........
And OSK. To think I could have had another 1,000 shares of that one at $4..... :~(
Buffett has said that he doesn't win them all, all he has to do is win more than he loses.
ROK has been doing pretty good also.
Yes, and we get to calculate our yield based on what we paid for it not the current price...
We are getting well over 15% on our money.
I probably should have covered your meals and drinks.... This ones been kicking azz. Maybe next time... :~)
Even near 40 bucks the yield is still an attractive 6+%!
In the past year we have better than doubled out money in addition to receiving a monster dividend. I'm pretty happy with this one - lol.
I had dinner with the oil guy last night and I am prodding him for another suggestion.
Nice to see he figured this out a year after we did. If he had seen it a year ago, he could have made some serious money.
Of course we had a Texas oil guy point it out to us so we shouldn't really be taking the credit.
Top Picks 2011: MV Oil Trust (MVO)
Posted Dec 27th 2010 3:00PM by Steven Halpern
"MV Oil Trust (MVO) is a U.S. royalty trust which receives 80% of the royalties on all properties of MV Partners; these properties are located in the oil-prone regions of Kansas and Colorado," notes income expert Carla Pasternak.
The editor of High Yield Investing explains, "Currently yielding 7.8%, I have selected the trust as my favorite investment idea for the coming year.
"The trust had proved reserves of 8,800 thousand barrels of oil equivalent at December 31, 2009, from which it produced about 780 thousand barrels of oil equivalent, giving it an estimated 11.3 years of remaining reserve life.
"However, according to the trust agreement, the trust will terminate on the later of June 30, 2026 or when 11.5 Mmboe (millions of barrels oil equivalent) have been produced.
"To date, less than 4 Mmboe have been produced over the five years since inception in 2006. At the current rate, the trust should have about 10 more years before it expires.
"The average price MVO receives for its oil has varied dramatically depending on market conditions. This variation has led to historically wide fluctuations in quarterly distributions.
"Over the last four quarters, MVO has distributed a total of $2.76 in variable quarterly payments, for a trailing yield of close to 8% at recent prices.
"Most of the distributions are treated as return of capital, so the trust can be held in a taxable brokerage account.
"At less than 13 times trailing earnings of $2.76 per unit, the units are trading at a discount relative to the S&P 500's almost 15 times.
"And considering the shares carry a yield that's about four times more than that of the U.S. equity benchmark, the shares look extremely attractive. The average daily volume of around 118,000 shares a day also provides reasonable liquidity.
"For income investors looking for an oil play, this trust offers a superior yield and capital gains upside."
Steven Halpern's TheStockAdvisors.com offers a free daily review of the favorite stock ideas of the nation's top financial newsletter advisors.
http://www.bloggingstocks.com/2010/12/27/top-picks-2011-mv-oil-trust-mvo/
You f'n retard! Didn't yo momma ever tell you to trust your gut?
have u figured out that ihub is domicile to the worlds worst investors? what scares me to death is most have moved en masse into gold, bonds, conservative etfs and things like MVO?
those who used to flip pennies all day now just talk of sports and politics (usually blaming one party or the other for their market losses)
I don't know, tapping on the brakes a few times wouldn't have hurt my feelings.
I was overworked for years. Very, very few days off.
On one hand this catastrophe helped me create a fairly decent nest egg.... But now... On the other.... Who the hell knows...
What's your prediction for the future?
what should have been done? i dont recall anyone in your industry asking for tighter credit or issuing warnings about putting too much money into homes >>> LOL
How would you have reacted if your congressman started stomping to let the froth out of RE and stocks? He might as well resign on the spot.
That warning from Greenspan was from May 2005. In most places real estate and the stock market would rise for another year. I didn't detect signs of falling RE prices until spring/suumer 2006 (and that started in Florida, not around me)
So the RUBBLE group firing up in mid 2005 is impressive.
May 21, 2005
Greenspan Warns of Housing Bubble.
The Fed chief perceives extreme overpricing in many local markets, but not nationwide.
By Annette Haddad
Times Staff Writer
Federal Reserve Chairman Alan Greenspan said Friday that some regional housing markets were showing signs of unsustainable speculation and "froth" and that there were "a lot" of local housing bubbles. The comments were Greenspan's most detailed description yet of risks in the booming real estate market, and reflected the Fed's growing concern about the need to tighten mortgage lending standards.
http://skeptically.org/economics/id13.html
I guess the question is....... Why wasn't anything done about it?
'shady mortgage dealings' actually most people knew the days of 20% down payment home loans to reliable workers had been replaced by a frenzy of 0% down payment loans to impecunious immigrants with dubious papers, and some very questionable appraisals.
not just home loans but boat loans, timeshare loans, car loans, vacation loans and yes, home improvement loans
a 1960s banker who lived thru the '30s wouldn't have loaned $20 to some of those borrowers
wall street insiders knew... except obviously those controlling bear sterns, Lehman, citi, bank of american fnma, Freddie etc, etc
i was online when greenspan warned against irrational exuberance and every stock player in the country wanted to lynch him
Ahhh, I thought you were saying the loss was in MVO and I couldn't figure out how you lost money on this one.
Sept 15th 2009.
Loss since purchase is all my stocks bought over the past dozen years or so.
I'd have to sell the good with the bad to come out unscathed.
Gonna be a nightmare to figure out since I bought many, multiple times, at different prices. And then the gained shares through DRIP's.....
The Feds are expected to announce the printing presses (Quantitative easing) are up and running again Nov. 3rd.
Which is supposedly whats shoring up the market for the time being.
If they choose not to...... It's gonna be a bloody mess...
Greensperm knew of the shady mortgage dealings years before the general public was informed and did nothing about it. Gone now, but the damage is done.
There's been just too many criminals running this country......
When did you purchase MVO? You should be up a lot.
Gain/Loss Since Purchase -0.25%.
Not counting non reinvested dividends and a roughly $5,000 gain from the sale of PEIX earlier this year.....
Goddamn decisions..... Decisions...... :~(
Probably the worse.
Didn't you hear the Fed yesterday? Their solution to their problems is to allow inflation which would mean that cash and bonds would be a terrible place to have your money.
I guess I was thinking of erf when i mentioned Canadian dollars.
agree save gm for defense reasons. by and large industrial corps have come thru the recession in excellent shape. like rok. gm's problems go back decades. they did the best they could. we need to nourish manufacturer technology as the germans have.
otoh we can count on the banking system going on welfare every 20 years. You can Bank on it! Greedy execs coupled with government guarantees to depositors are a bad combination. Normal market forces don't work on banks so they need to be regulated better. Execs need to be paid more in restricted stock so they think long term. And many need to fail...DEAD! (maybe not now, but eventually)
I'm very tempted to get the hell out of this corrupt mega casino they call the stock market.
I could bail now with barely a skinned knee.
The endless flow of doom and gloom is getting to me.
I can't see how we can avoid another depression....... Or worse....
My ERF does.
http://www.dividendinformation.com/ERF_dividends
Do I know all..... Or any of the foreign tax implications....?
Nope...
All of MVO's wells are in the US.
I agree with your summation of AIB. I think they should have let all those big banks fail (both here and elsewhere). I have no compassion for the greedy moneymen. It would have been painful for all of us in the short run but probably better for the country in the long run.
It looks like the only thing the government did right was GM. The taxpayer will probably come out ahead on that one and we still have viable company employing US citizens as opposed to just letting it go bankrupt.
doesnt mvo make its money in Canadian dollars? foreign money has flooded canada. Its banking system is sometimes rated best in the world versus irelands joke of a banking system
aib is just a gamble right now, and a pretty depressing one at that. Scary how a handful of greedy incompetent bankers (who were apparently not outright crooks) can destroy so much, perhaps a whole country and maybe for a generation or more
I don't know what the Canadian dollar has to do with MVO but as for all the rest, I'm not an expert but I do know one who pointed me toward this. I lose on some investments and win on others and as long as the winners outnumber the losers, I am doing ok. Since it has worked for me for over 30 years now, I have no complaints.
Since most of my investment capital is in index funds these days, I just ride out the major ups and downs and take the long view toward investing. I have never been a trader so when buying individual companies, I tend to stay with them a long time. I still own the first stock I ever bought (WMT) back in 1976 and while I did sell some of it, I have no complaints although it has pretty much had its run and I should probably sell the rest of it. I'm sentimental I guess.
also a play on the very strong Canadian dollar especially over the past month. im sure ur an expert on interest rates, oil prices and exploration and foreign currency along with understanding the complexities and tax ramifications of MVO's structure, so pat yourself on the back.
investing is easy if you avoid obvious scams and can dodge bubbles in stocks and real estate. And not get greedy or too full of your own brief successes.
http://moneycentral.msn.com/investor/charts/chartdl.aspx?Symbol=%2fCADUS&ShowChtBt=Refresh+Chart&DateRangeForm=1&C9=0&ComparisonsForm=1&CE=0&DisplayForm=1&D4=1&D5=0&3=0&ViewType=0&CP=0&PT=8
did i say it was a bad investment?
Bar1080:
I should probably point out that MBR and I are earning a dividend of over 30% based on our purchase price. That means that we will have our total investment returned in cash in less than 3 years not counting the gain in the stock price which is almost 100% so far.
I would like all my investments to be this bad.
AUSTIN, Texas--(BUSINESS WIRE)-- MV Oil Trust (NYSE:MVO - News) announced the Trust distribution of Net Profits for the third quarterly payment period ended September 30, 2010.
Unitholders of record on October 15, 2010 will receive a distribution amounting to $7,015,000 or $0.61 per unit payable October 25, 2010.
At least something is trending up............
Wheeee..... A 50% increase in the dividend!
MV Oil Trust Announces Trust Second Quarter Distribution
Thursday 8 July 2010,
MV Oil Trust (NYSE: MVO) announced the Trust distribution of Net Profits for the second quarterly payment period ended June 30, 2010.
Unitholders of record on July 15, 2010 will receive a distribution amounting to $11,097,500 or $0.965 per unit payable July 23, 2010.
Its a good dividend but keep an eye on the company's performance.
Top 10 DOW dividend paying stocks........ JNJ, KO, MCD, CVX, KFT, MRK, PFE, DD, VZ, T.
Added some T to my stockpile. Paying 6.5%.
MV Oil Trust Announces Trust First Quarter Distribution
MV Oil Trust (NYSE: MVO) announced the Trust distribution of Net Profits for the first quarterly payment period ended March 31, 2010.
Unitholders of record on April 15, 2010 will receive a distribution amounting to $6,957,500 or $0.605 per unit payable April 23, 2010.
beats me >>> complicated unit trust and canadian dollar exchange rate affects it. payout is monthly which says its designed for retirees. these were sold almost like bonds with an inflation kicker. they did well partially because interest rates have fallen steadily. what happens if interest rates rise???
trades on the prestigious nyse and toronto stock exchanges. faq covers many of the risks and does mention hedging >>>
http://www.enerplus.com/about_enerplus/faq.shtml
whats ur cpa think of complex foreign deals like these?
And another XTO distributed.....
http://www.hugotontrust.com/pages/distributions.html
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