Not too long ago the Sandridge Permian Trust (OTCMKTS:PERS) stock had suffered from a slump but yesterday it made a strong recovery and managed to deliver gains of as much as 36%.
While the recovery might come as a big positive for the investors, it is perhaps also necessary to keep in mind that there was no news about the company yesterday or in recent days that might have led to such a recovery. However, it could be a good move for investors to perhaps take a look at a key announcement from the company back on July 30.
At the time the company announced that it was going to distribute as much as $9.5 million in the form of its quarterly distribution at $1.82 a unit. The amount that was distributed by the company was for the quarter that had ended on June 30, 2021 and that made up $0.4 million.
On the other hand, as much as $3.5 million represented the full payment for the unpaid part of the money that was owed to Sandridge by Avalon Energy. While this development may not have been the reason behind the rally it is something that investors ought to know about.