Acquires net profits interests in oil and gas properties. Holds these interests for the purpose of generating income. Now — the numbers.
This is an established company with proven profits.
No real growth (-2% a year).
If every debt were paid off today, $1.2M would still be left in the vault — a solid cushion for hard times.
The market pays 0.7× for every dollar of annual profit — cheap, which is either an opportunity or a warning.
No analyst target is on record for this company.
Executive selling isn’t always bad news; people sell for personal reasons too. Still, the thin buying side is worth noting.
An investor who bought at the very peak is down 96% today. The business is the same; what changed most is the price — and the expectations — the market pins on it.
The net profit margin is 92% — still a thick cushion, though costs have been eating into it lately.
There is $1.2M in the vault; even if every debt were paid off, $1.2M would remain.
It pays out $1.11 per share each year — regular cash for whoever holds the stock.
The stock sits at $0.60. Under exchange rules, stocks that stay below $1 for too long risk being removed from the market.
Over the last 4 years, sales fell about 2% a year on average. Profit is holding up, but a shrinking business is a risk worth watching.
Over the last 12 months, executives reported 11 sells against just 0 buys. Not an alarm bell by itself, but a number worth watching.
We grade companies — revenue, margins, balance sheets. This is a fund, so there is no report card to give. That is not a low grade; it is a different kind of thing.
One-line summary: a basket, not a business. Judge it by what it holds.