WHX like so many royalty trusts arrangements that trade on the NYSE are long term buys. Current estimates are for a return of $13 to $14 at the current price of oil and natural gas for this trust. However, you will easily receive much more over the life of the trust closer to $25 or $30. Within two years the trust will trade abover $20 share. And here is my reasoning.

First peak oil. For a better explanation I suggest you read one of the many excellent analysis of it from the many folks on the theoildrum.com have looked at the global oil production. I personally believe that oil peak two weeks ago without much fanfare. If this is the case you will easily see oil prices back to over $100 barrel by year end, only to stay abover $100 forever more.

The second major factor is the extreme amount of US Treasury debt that has to will be dumped on the market over the course of the year. Essentially we are issuing 4x last year debt. No nation or group of investors are large enough to absorb that much debt period. This will only result in the rampant printing of money and hence inflation. Only real assets like this trust that are based on oil and natural gas.

David Faber on cnbc did a good piece this morning on the issuance of US debt:

http://www.cnbc.com/id/15840232?video=11...

The piece is essentially correct, the writing is on the wall. Only real assets like WHX will do well. I would suggest during the course of the next year as oil prices are ramping up that you reinvest the dividends into the stock as I am. In that the ideal scenario you want a large major holder of WHX who has short term outlook on the situation to sell off their shares and push the price down to well below the current NAV based on todays oil price. Amazingly they will be far far below the long term NAV given the two factors I have laid out before you.

Regards