Trusts: Profitable Or Principal Traps? Learn To Understand [Whiting USA Trust] - Seeking Alpha
This is a good article on oil and gas trusts. Some have defined time limits of existence, and others are perpetual until the oil or gas runs out. WHX and WHZ are time limit oil trusts. The best way to make money on them is to buy them after the quarterly ex-dividend date sell-off when the stock price should hit a bottom in two weeks or less although it could still go lower. Then, hold on to the stocks until they get close to the next ex-dividend day. Sell the stocks while they are still high for a double-digit return each quarter without ever actually collecting the dividend. In this way, you will not lose money on capital losses as the price gradually decreases over time.
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