if citadel is in this stock they will manipulate the shares all the while buying them up. hold the course. look at what they did with etrade. 5 bagger they will lend the money if the time comes. IMHO
While this post is clearly a scam the question is a valid one. Selling now seems pointless as the shares are almost worthless unless one has many tens of thousands of shares. However, it might be a good time to move some shares from a Trad IRA to a Roth if you can.That way if they ever rebound and start paying a dividend you are free of further taxes and if not the tax bite of making a withdrawal will be pretty minimum. If you are over 70.5 and facing a RMD then lowering the value of an IRA had benefits too. I'm not a CPA or certified anything but this is an idea worth contemplating. Appreciate any comments or criticisms of this idea. GLL
I'll accept your figures, Rain. Still, my beef with Linn Energy goes back to Q4, 2014 when they declared a loss of a bit more than $95 mil. $45 mil of that was a one-time transaction cost. The remaining $50 mil+ loss went unexplained And it continued to be mysteriously invisible. This was when Linn's hedges were first-rate. And a phone call to the company did me no good. That's when I concluded that the company was untrustworthy and I sold out all of my (way too many) shares of LNCO in the 23s. One or two other posters felt the same concerns as mine. So even at $60 oil, I wouldn't be able to manage the trust necessary to bet that this company can manage itself effectively and that there's more to their story than basic numbers can reveal.
I didn't know the answer to my question. I knew the relationship you said I didn't know, and you uncorrectly characterized. Why can't people just answer the question, or just ignore it? Why do you have to try to prove you know so much, when it clearly justs wastes everyone's time?
If they opt for the latter, that would be a huge deal for LNCO shareholders. Considering the current price of LINE shares, and the potential size of the tax liability, LNCO might have to unload a big percentage of their LINE holding. This would signfiicantly cap the upside for LNCO holders in any recovery.
There's nothing mysterious about paying the taxes. Either Linn Energy will find cash to foot the bill or LinnCo will sell enough LINE shares (which is all they have in assets in light of their being a non-business) at a big discount to attract buyers. Even LNCO they may be unloading some LIN on the open market. The accountants at Linn will be working to minimize the bill, however.
Thanks for the analysis. I would love to think that a buy back is in the plans, but wouldn't a reverse split get them above $1.00. If we could be assured that "emotion" was out of the stock price, and that a bottom in oil has been hit I think they could make it out of this morass.
Check out ULTIMATE STOCK ALERTS (search them on google) and you wont be disappointed. Their last alert made me 30% over 3 days. Cant complain about that, especially in such a bearish market.
dagg--Thanks for that clear explanation of what we are really looking at. We can "tread water" at ~ $25 and keep the bank sharks from eating us alive. Hmmmm-- maybe I should have said "tread oil" ???
I don't understand that. LNCO has zero debt. OK. But they're apparently about to get a huge tax bill. How are they going to pay that bill?
Ron, I revisited the 10-Q for Q3 2015. It is easy to calculate that if average NYMEX price for oil had been $59/Bbl (not $46.43/Bbl), average price for NG had been $3.5/MMBtu (not $2.77) and average price for NGL had been 26% of oil, than Linn (without hedges) would have broken-even.
I agree, LNCO has 0 debt
It is a pass through, that owns LINE.
I do not th ink this is an issue for LNCO holders.
I do believe the massive write-offs and write-downs will offset most if not ALL of the gains on the disposal of debt. There seems to be a lot of fear mongering among the shorts.