is this a good deal.

pbt pays 15.7% annually but paid on a monthly basis.

margin costs 8% with my broker. the dividend pay the cost of the margin and leaves 7.7% monthly profit.

am i not seeing this clearly?

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Posted by Zilla

Member since Jul 2005

10644 posts

Posted on 10/8/08 at 9:52 pm to morgcl

TGTBT

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Posted by ironsides

Nashville, TN

Member since May 2006

8154 posts

Posted on 10/8/08 at 11:44 pm to morgcl

If PBT goes down in price, you're fricked, and your broker can liquidate your account. How's that for good times?

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Posted by morgcl

nor east fl

Member since Dec 2007

926 posts

Posted on 10/9/08 at 12:02 am to ironsides

If PBT goes down in price, you're fricked, and your broker can liquidate your account. How's that for good times?

I have more than enough stock to take most any hit.

this is an oil well trust stock. the earning on the oil wells are passed on each month and if oil stays above 70 a barrel they are well ahead of the game and the saudi's will cut production to keep the oil prices high.

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Posted by ironsides

Nashville, TN

Member since May 2006

8154 posts

Posted on 10/9/08 at 8:04 am to morgcl

quote:
I have more than enough stock to take most any hit.

Then you should be okay - as long as you don't leverage too much :)

I have gotten assfricked on PWE lately but am going to stay in the game. Rumor is that Ghawar north oil field in Saudi Arabia is drying up.

Also, considering the fact that we royally fricked the Chinese and Saudis (took a stake in Citibank) with mortgage backed securities, and that Hugo Chavez hates us, russian warships are headed to Venezuela, and that it is shaping up to be a cold-arse winter here in the northeast oil should be okay.

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