BSO

[ShareCafe]

BASS STRAIT OIL TRUST

[toilet]

Hi PPL ~

 

i find this stock VERY UNSUAL

it is trading at around $3.07 now

 

and it pays a DIVIDEND YIELD of 17% according to

Comsec research. It should comprise of a dividend component

and a royalty income component.

 

This company recieces royalties from BHP

according the amount of OIL pumped there.

 

anyone out there that can explain why there is such a HIGH DIVIDEND yield to me ?

[crassus]

IN REPLY TO A POST BY toilet, Mon 22/03/04 02:29pm

westpac broking shows a yield of 12%?

[toilet]

 

well from last yr jun 24 it shows this

Interim 18.07 23 Dec, 03 15 Jan, 04

Final 21.21 24 Jun, 03 15 Jul, 03

Capital Return 25.00 24 Jun, 03 15 Jul, 03

total of 64.28 cents

current price around $3.10

 

64.28 cents / 310 cents = 0.20735

which shows a 20% dividend yield !!

 

 

[Mickutse]

I looked at this company a little while ago, as they say, you should invest in anything you dont understand. A bit of research is required before investing in this company.

 

The reason for the high yield is that each dividend comprises a large captial return component (25c bi-annually), effectively giving back company capital to unit holders. These distributions, along with BHP royalties, expire in July 2007.

 

Between now and July 2007, unitholders by my calculation will receive 7 more distributions comprising a 25c capital component (7 x 25c = $1.75) in addition to an income royalty distribution (depends on oil production from BHP but lets assumes about 20c, therefore 20x x 7 = $1.40)

 

Meaning between now and July 2007, BSO will payout ~$3.15 in dividends, at which point the company will be basically worthless as they will have no more income (due to royalties expiring) and no more capital.

 

IMO this makes BSO a poor investment given the little returns on offer

[toilet]

Ahhhhhh i c !!

yes i have not invested into this company yet.

i tried to do some research but there is just minimal information on this one

where did ur rserach resources come from ??

 

but i must say everytime after the capital return the

stock easily recovers back up during the time leading up to the

next payment, there maybe some easy returns made there i suspect.

 

 

[Mickutse]

IN REPLY TO A POST BY toilet, Mon 22/03/04 09:20pm

I suspect there are number of investors that dont fully understand how this company works and are willing to invest due to the fat dividend yields, thus keeping the SP high. Although based on my figures I believe BSO is fairly well priced.

 

Im not sure what plans management have with company once July 2007 rolls up so there may still be some upside in this company if the board have something up their sleeve so to speak.

 

I gained my info on this stock by reading through thier annual reports and market announcements.

[toilet]

ah i c .

well this one at the moment looks like

its got a similar fashion to a BOND with coupon payments~!

= )

 

well if u read the company profiles it does mention

OTHER INVESTMENTS: BSO invests only in the following authorised Investments:

Unsecured loans or deposits with financial institutions and bonds, debentures or

similar securities issued by a Commonwealth, State or Territory governments or

semi-government authorities.

 

[Acid]

for the last couple of years I have used this stock as a reqular means income. contrary to what is said elsewhere in this thread it is good value, tax effective, and 2007 is a long way off. I have just completed my sell and buy. From past experience the SP rises in the new financial year. So I buy at an average of $2.65, then will recieve a return in six months time of around 17%, then the cycle starts again. No, or minor capital gains but a divi and capital return. don't dismiss a "boring" stock like this one.

 

[toilet]

did it go EX-something today ?

there was a big drop in the stock