Bullboard - Stock Discussion Forum BetaPro Crude Oil Leveraged Daily Bull ETF T.HOU

Alternate Symbol(s): HROZF | HZOZF

HOU¿s investment objective is to seek daily investment results, before fees, expenses, distributions, brokerage commissions and other transaction costs, that endeavour to correspond to up to two times (200%) the daily performance of the Horizons Crude Oil Rolling Futures Index. HOU is denominated in Canadian dollars.

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BetaPro Crude Oil Leveraged Daily Bull ETF > PE ratio of 6.27

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Post by halfcentman on Apr 22, 2020 7:54am

PE ratio of 6.27

All that matters to me is that someone is willing to pay 6.27 the value of the stock. The same dynamics that are in play if you were to trade in Apple or Tesla. You pay as a function of expected earnings, in HOU's case expected future value of crude. The floor that is under this is the fear and greed that will support the price should it fall dramatically.

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Comment by Mat1791 on Apr 22, 2020 8:05am

So the July2020 contract? Would love a further explanation... You undestand this is a commodity, that at some point, not us, someone has to take possession? It does not trade like a stock. The values, in normal times, are adjusted to the price of the underlying commodity, period. If the July2020 contract is 19.96 currently, and our June is 11.08 currently, the etf is not valued ...more

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Comment by halfcentman on Apr 22, 2020 8:16am

1791, I hear you. Tell that to everyone that paid 6.27 NAV yesterday. In fact, it was alot more than 6.27 durings some parts of the day. I bought in the $1.20 range with oil around $15. The TSE and MM won't give up this cash cow.

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Comment by Mat1791 on Apr 22, 2020 8:21am

Yesterday had no rebalancing mechinisms running. Outside of yesterday, it wouldn't have. That's why the CEO warned "not to buy"

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Comment by halfcentman on Apr 22, 2020 8:27am

1791, "not to buy"? Trust me, HOU will be the most actively traded TSX stock today. Same goes for USO.

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Comment by Mat1791 on Apr 22, 2020 8:29am

Yep, I get that. But the warning is so people like you don't go crazy when the adjustment occurs and HOU drops from 2.23 to .72...

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Comment by halfcentman on Apr 22, 2020 8:35am

1791, They should have made the adjustment by now and haven't. Let's see what the price is at 9:30:01am

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Comment by Mat1791 on Apr 22, 2020 8:43am

I agree, no idea if it will open at adjustment or stay with the premium. I guess my warning would be, this will trade at a premium to true value as long as no MMs, if oil can go up to offset the variance, then the adjustment (who knows when or how many times) won't be as bad. Trading this until the adjustment (again unknown, when, how many, how long) has the added risk of being caught ...more

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