This is a great analogy! You are right on.
PS I have been an owner of LNCO/LINE for 5-6 years;
Thanks Car Guy
Sentiment: Strong Buy
lord, that does not make sense to me. Looking at today's volume, LNCO only has about 1/2 of LINE volume. If someone were converting, wouldn't they be closer together?
if they buy back 100,000 shares on LNCO and issue 100,000 shares on LINE, it costs them nothing. They actually make the spread. But there is no longer a spread between the two so I doubt they are doing to today.
given line's need for cash I doubt that line is buying any units at these prices I they would drop significantly then maybe but right now I can't see them burning their cash at these levels
Just took off the spread at LNCO .04 over LINE. Took a lot longer than I thought, but with a profit of $2.10, I'm not complaining.
Interesting article in Reuters--wells, especially older ones that were fracked in the early days of the development of fracking technology, can be re-fracked with good results. I wonder if this applies to Line's wells?
maybe line is buying back LNCO and issuing equal number of new shares of LINE through their ATM program and then capturing the spread.
How odd, a buck gap holds all year, with some ups and downs of course, and suddenly in the course of a few days it vanishes. The only apparent catalyst was that one analyst comment, but why would that change the behavior of the entire market? Weird.