in other words at today's price its like paying 37.92 for LNCO , which is cheaper than what LINE is currently going for
so, I just sold some LINE to buy BRY so I can get LNCO. I'll miss a LINE distribution but even with that and commissions factored in, I'll get LNCO for a ~0.50 premium over LINE, instead of today's ~$3.27 premium to LINE. I'll take the extra 7% this arbitrage play provides
and then I'll probably flip the LNCO back into LINE units, if the current spread is maintained- the lower yield of LNCO ain't worth the benefits, for my situation
bluedreamdreamer: Your analysis is sound in theory, but what is the p/s being paid by LNCO for BRY's shares? Yesterday's price of BRY? Today's price of BRY? Do you know the specific dollar amount being paid, on a p/s basis, via the contractual filings between the parties? I'm looking for the specifics but haven't run across them yet... Any information here would be appreciated...
Thanks in advance and GLTA.