Permian Basin Shares Plunged: What You Need to Know (HGT, PBT, SBR)

Permian Basin Shares Plunged: What You Need to Know

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Permian Basin Royalty Trust (NYSE: PBT ) sank as low as 11% in intraday trading Tuesday on substantially higher than average volume.

So what: At the time of publication, more than 1 million Permian Basin shares had already changed hands, versus the three-month average volume of just 175,000 shares. The stock hit a daily low of about $19.40 just after 11 a.m., but has since recovered a good chunk of that loss and sits at about $20.60 -- down about 6% for the day.

Now what: Mr. Market might be providing Fools with a juicy income opportunity. Without any big news coming out of Permian Basin, I'm taking today's crazy action as part of the usual volatility that goes with being so levered to energy prices. Rivals Hugoton Royalty Trust (NYSE: HGT ) and Sabine Royalty Trust (NYSE: SBR ) are also off more than 3% today, so investors would do well to keep today's loss in perspective.

Interested in more info on Permian Basin? Add it to your watchlist.

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.

Report this Comment On January 25, 2011, at 4:40 PM, dmmorrison wrote:

Good analysis. Energy prices are extremely volatile as the recovery gathers momentum. No substantive news on this stock besides that. A good buying opportunity. It's current yield is terrific. I'm sticking with it. May even accumulate more.
Report this Comment On January 25, 2011, at 7:23 PM, zilwin wrote:

I would have hoped the author would have done a bit more research into the move. I did and if you look at the intraday there was a large block of stock that traded today in a single block and the same thing happened Fri in 2 separate blocks. Obviously a large holder is reducing or closing their position. In a stock traded as thinly as this one it takes awhile to recover from a sharp price decline when large blocks of stock changes hands. I agree this is probably a good opportunity to add to your position. I did. I'll add some more when I see it bounce.

updated 7 hours ago Sponsored by:
	DOW	12,454.83	-74.92	-0.60%
	S&P 500	1,317.82	-2.86	-0.22%
	NASD	2,837.53	-1.85	-0.07%

SBR	$49.75		+0.30	+0.61%
Sabine Royalty Tru…		CAPS Rating:

PBT	$18.93		+0.13	+0.69%
Permian Basin Roya…		CAPS Rating:

HGT	$6.84		-0.15	-2.15%
Hugoton Royalty Tr…		CAPS Rating:

10

Permian Basin Shares Plunged: What You Need to Know

Watch stocks you care about

Comments from our Foolish Readers

Report this Comment On January 25, 2011, at 4:40 PM, dmmorrison wrote:

Report this Comment On January 25, 2011, at 7:23 PM, zilwin wrote:

Add your comment.

Compare Brokers

Report This Comment

Sending report...

Today's Market

Create My Watchlist

You don't seem to be following any stocks yet!

Most Popular Articles

Related Tickers