Shares of Whiting USA Trust I (WHX) continue to nosedive during the Monday afternoon trading session. Weakness being attributed to Citron Research report that asserts with 100% certainty, that the stock will be worthless at a certain point in the future. According to Citron, WHX “has been bid up to a level completely detached from its real value, having been erroneously included with comparable “real” dividend and cash flow stocks that have an enduring asset base.”
Citron also says that WHX is an investment trust that will be liquidated after it sells 9.11 million MMBOE (barrels of oil equivalence), a gross measure of hydrocarbon energy.
In early afternoon trading, Whiting fell $1.90, or 8.76%, to $19.78.
Whiting USA Trust I is a REIT. The trust was founded in 2007 and is based in Austin, Texas. WHX operates as a subsidiary of Whiting Petroleum Corp. (WLL).