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Blue EI, Issue #2 -- Oil Royalty Trusts...Time Sensitive Info
March 08, 2019
VIP Info, please read.

Greetings to all extraordinaryinvestor students...........

I hope all is well with you, and are successfully surviving the cold, wet, and dreary end of the winter season. But spring weather is just around the corner, believe it or not.

The News Letter addresses oil trust stocks. But first I want to review my stock recommendations to you in my last newsletter...

I advised members, for over a year, to monitor Elite Pharmaceuticals (ELTP) and Avita (AVMXY)...

Since the, Avita (AVMXY) is trading around $2 a share from 80 in mid 1918. Yes, Avita's spray-on skin product was approved by the FDA last year as I had anticipated. Now the price should slowly continue to climb as they put into place their marketing plan for their product.

ELTP actually traded below 8 cents several times in late 2018, and traded for around 8 cents for several months. Now ELTP is again trading around 10 cents. ELTP is a great company, with a successful and growing generic drug business, and some super excellent tamper-resistant drugs in the pipeline. Even if their tamper resistant drugs are not approved, ELTP is setting itself up to grow in value as they continue to develop their generic drug business. So, buying this stock at 10 cents or lower is really non-risk, and has great potential to explode in value. * *

Now, about the Oil Royalty Trust Stocks...

I have been studying the oil trust companies and buying up shares for a couple months now, ever since oil prices dropped off a cliff.

The dividends of oil trust stocks is extraordinary: around 15% to 30$ dividends - if oil prices per barrel are around $66 per barrel or more.

Will oil prices go up again? Of course they will. And from looking at the technical data on the charts, oil prices are on their way up again after dropping to a low of around $43 a barrel in late December 2018. By mid-Summer, it looks like oil will be trading around at least $70 per barrel (conservatively). * * Regarding the Oil Royalty Trusts...

Not all Oil Royalty Trusts are created equal.... All Royalty trusts - BY LAW - must pay out 80% to 90% to keep their tax exempt status as a Royalty Trust.

Oil Royalty Trusts are not created equal; in that, they commonly have termination dates at which time the Oil Royalty Trust closes shop. So, you have to monitor these trust to make sure you are not buying, or holding onto a Royalty Trust too close to the termination date. If you own a Royalty Trust stock, sell about 2 years before the termination date to be on the safe side, or at least 1 1/2 years if oil prices are trading extremely high and keep rising.

Also, if a Royalty Trust doesn't have a termination date, you still have to monitor it, because sooner or later the oil wells designated for the oil trust will eventually run out of oil. Before the wells run dry though, the wells will produce ever less amounts of oil as every high maintenance costs. Take that as a warning... So, you have to watch for signs when the wells look like they are beginning to show signs of depletion, and sell those shares ahead of time.

If you monitor these Royalty Trusts in the ways I mentioned then you will be able to buy at the right time, and also to sell your shares at a price that is at or above the price you paid for them, thus holding onto your principle (original investment) while you earn huge dividends while you own them.

If you buy Oil Royalty Trusts now, before oil prices really start taking off, then you will be able to buy shares at lows, which will diminish the risk of losing principle when you finally sell the shares. Plus you can actually make money on the shares you sell - in addition to the 15%-30% dividends you will be earning every quarter.

So, I recommend you buy shares of Oil Royalty Trusts ASAP! if you have the funds to do so.

I will list for you Royalty Trusts I have already screened, and determined are the best Royalty Trusts to own for the next 4 years. These are all perpetual Royalty Trusts, which means they have no termination date. And these Royalty Trusts are still pretty young.

Put these Oil Trusts in your google finanance portfolio and follow them...

Keep in mind that Dividends will increase as oil prices recover. So will Oil Trust prices increase - so you want to buy these shares at a low now so you make the ever increasing dividends per share as oil prices go up. *

OK here is the list... * -

*** Permianville Royalty Trust (PVL)... buy now at $2.65 or lower. *

*** BP Prudhoe Bay Royalty Trust (BPT)... buy at around $23-$24. Only hold onto this stock for a year, then sell, because the wells are beginning to run dry - possibly. For now, the potential share price increase will be sharp as oil prices keep rising. *

*** Pacific Coast Oil Trust (ROYT)... buy at 1.97 or lower. *

*** SandRidge Mississippian Trust II (SDR)... buy at 1.03 or lower.

Blessings, and more news on the way as I prepare to publish my blog. I am really sorry the blog is taking so long, but for some reason I an never find the time to set it up.

Continue onward and be Extraordinary : )

Steven

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