It's not. I made the same comment on the LINE board. LNCO and LINE are the same company. The only difference is instutional investors can invest in LNCO but not LINE. The retail investor who buys LNCO over LINE can only be motivated by not having to deal with the K-1 schedule for tax purposes. Personally, I think a retail investor is stupid to pay such a high premium for the same company and same dividend.
djpicoman: Actually LNCO is really an MLP wrapped in the confines of a corporate structure, which by itself is a novel creation; granted they are similar in many aspects, but there are differences regarding the 'drop-down' of certain assets between the two and the reciprocal financial agreements between the entities... (K-1's are really no problem using something akin to turbo-tax-pro-edition)... Additionally, LNCO's soon to be monthly distribution is a good draw for those seeking income producing $'s instead of quarterly payouts... (It may add more price stability on p/s basis over the longer-term, IMO)... Been with LNCO since initial creation and the differential then was nominal... BRY acquisition should be interesting when in plays out... GLTA
The fact that LNCO is open to more institutional investors than LINN suggests that LNCO will see a greater increase in share price than LINN. That may make LNCO more attractive than LINN to some retail investors who are looking for both growth and income. Especially if growth has a slightly higher priority.