Stock to Sell #6 – San Juan Basin Royalty Trust (SJT)
Like SBR, San Juan Basin Royalty Trust (SJT) is holding gas and oil properties with a diminishing life expectancy. Thus, its monthly income must decline until the trust liquidates. It currently pays out $1.14 a year (7.1% yield), but income and cash flow have been declining since 2008.
Technically, the stock broke down from a bull channel in late September, flashed sell signals from our CBR indicator and MACD, and is currently putting pressure on its 200-day moving average. Sell SJT at the market.