Value Microcaps Motherboard

[cliffvb]

LRT-$3.15 This is a US oil trust with gulf and Florida interests. This one was whacked in the hurricanes last year. Was in the $6-$8 range and dropped into the $2-$3 range and the dividend distributions were suspended. Off shore wells are not expected to re-open but their main asset is the Jay field which is 30 miles inland off the FL panhandle. That operation is run by Exxon. Oil flow was also reduced there while Exxon rebuilds some trunklines.

Just made its first monthly distribution of 2c since last fall. Interesting part is that the petroleum engineers reserve study estimates that by next year the net distributions will be $18.4 million. Deducting 13% for the loss of offshore operations and trustee expenses of $1 mil still leaves $15 mil in net distributions that are required to be paid out to stock(unit)holders. This one sports a market cap of $60 million now so that would be a 25% yield. The estimated PV10 value is $114 mil so it is about half that. I believe this one could double in the next year.