I found Conwest Associates L.P. (CWPS) whilst perusing through one of my old Walker's Manuals. It never ceases to amaze me how one can look through these books which are decades old and still find active value.
Information on this limited partnership is scant.
The OTC markets quote page on CWPS reveals virtually nothing other than a contact address and phone number. No market cap, no shares outstanding figure, no business discription, no website or even state of incorporation.
What it does tell us is;
Share price = $29.50 (Spread $28.00 / $32.00)
Dividend per share = $4.42
This gives us an annual yield of 14.98% at the current market price.
The stock is very illiquid with typically only a few hundred shares traded every other day or so.
Thankfully we've got the Walker's Manual to provide us with a little more illumination.
Walker's reports that;
'Conwest Associates, a limited partnership, was formed in 1996 upon the liquidation of The Consolidated Royalty Oil Company. The corporation's interest in ongoing oil and gas production royalties was transferred to the trust for the benefit of its shareholders....The partnership collects and distributes royalty payments. It has no further business. Substantially all of the partnership's revenue comes from oil and gas royalties from three payors.'
Walkers also notes the following;
Number of units outstanding = 606,434 (This would give us a current market cap of $17,889,803)
Frequency of dividends = Quarterly
Earnings per unit for the period 1997-2001 were as follows;
1997 = $1.52 EPU
1998 = $0.78 EPU
1999 = $$1.13 EPU
2000 - $1.78 EPU
2001 = $1.71 EPU
Annual revenues and earnings for the partnership fluctuate from year to year based upon both the level of O&G production and O&G prices.
Given the global push to move away from fossil fuels this is unlikely to be a favourable long-term investment but the short-to-mid-term value seems reasonable. In order to get financials for CWPS I suspect one will need to provide proof of ownership and be added to the share register.
Here's a historical price chart for those of us who like to study them ;
Given the current Shiller P/E for the S&P500 stands at 29.8 for an implied annual return of -1.78%, CWPS might not be such a bad place to park your money whilst you wait for the bear to rear it's head.
Thanks for reading,
Disclaimer: I do not hold fractional ownership in CWPS at the time of writing.
David J. Flood
UK based Value Investor.
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