Replies to post #13 on Hugoton Royalty Trust (HGTXU)

[Hockmir]

I guess it depends a little bit on your time horizon. I have found, as a general rule, that stocks which swing by at least a 3% amplitude around the meancan be used to produce a fairly high ROI.

WIth a 3% swing, once a month, we have the math of:

(1.03^12)= 1.425

i.e. it will generate a 42.5% return on the year. Hard to match sitting and collecting divvies. The larger the divvies the trust produces, usually the larger the swing right before and right after the record date.

In more stable times, holding and collecting is prudent. In these times, in my opinion, holding for the long term is less certain.