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Rocky’s Weekly Stock Picks

The best part of Spring is over. Soon the world will no longer be one big refrigerator, and all manners of creepy crawlies will be out and about. How depressing.

You know what’s not depressing? Investing!

  1. PVL - $2.76/share, ex-div 4/27. Oil and gas, gas and oil, what more do you need to know? How about 16.47% annualized return, based on TD Ameritrade’s composite view? What if we told you that it’s not too far off from the mark of what you can actually expect?

  2. GULTU - $0.0183/share, ex-div 4/27. From what little data is available about this OTC Pink sheet, the share price seems stable and the distributions come out to a whopping 48%! This has ‘red flag’ written all over it, but let’s see what we’re actually dealing with.

    Gulf Coast Ultra Deep Royalty Trust (the Royalty Trust) is a statutory trust. The Company holds overriding royalty interest in future production from each of McMoRan's Inboard Lower Tertiary/Cretaceous exploration prospects located in the shallow waters of the Gulf of Mexico and onshore in South Louisiana.

    We know that McMoRan is a pretty solid company to put money into. We know that the trust itself has to do little more than hold money and distribute money. And we also know that people love to pollute the Gulf of Mexico in order to make money.

    Seems legit. If you don’t want to pay a commission for over-the-counter trades, check out Tradestation.

  3. HGTXU - $1.72/share, ex-div 4/27. OTCQB , 35%. American energy production. 35% return seems a little more skewed than what we actually experience, but not unreasonably so.

    While we’re buying OTC stocks commission-free, we may as well expand on this one.

  4. FREVS - $15.25/share, ex-div 5/31. 1.31% annualized…For a REIT? That’s quite low. Distribution amounts are inconsistent, causing this skewed representation.

    What is FREVS? Another OTC stock, but this time it’s a REIT with properties in New Jersey, Maryland, and New York. We approve.

  5. PBR.A - $10.42/share, ex-div 4/28, 61.35% , no big deal.

    The ex-div date is the same day a massive distribution is being paid out. The 60% is beyond skewed.

    A more realistic return is about 20%.

    Yeah, Brazilian energy is a thing. How long can they pay 20% for? Probably easily the next decade and a half.