Sun, Sep 21, 2014, 7:10 PM EDT - U.S. Markets closed


% | $
Quotes you view appear here for quick access.

Linn Co, LLC Message Board

  • fish.andchips fish.andchips May 22, 2013 6:58 AM Flag

    3 questions for the board

    What would/will happen to the stock:
    1-If the price of natural gas went to $3 or $6?
    2-When we go to monthly dividends payments?
    3-When liquefied natural gas plants go into production to ship the gas overseas?


    Sentiment: Strong Buy

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • 1) Linn would generate more revenue, which likely would lead to an increase in the distribution. But, it won’t double due to the hedging – some hedges, 70%, lock in a price or price corridor, the remainder, 30%, remove the downside but retain the upside. This 30% would allow Linn’s revenue to participate in the price appreciation of NatGas.

      2) There would be less of a run up before, and sell off after the distribution “ex” date. Therefore the volatility of Line/Lnco would decline and therefore be dominated by a combination of operational developments and an occasional B/S Barron’s article.

      3) If LNG affects the price of NG, see answer # 1.

    • 1.) Not very much since Linn is hedged out 5 years
      2.) No difference
      3.) No difference

      • 1 Reply to rlp2451
      • robin0635 May 22, 2013 5:54 PM Flag

        rlp: Is it possible for you to ever agree with someone who is factually correct in their answer to a cognizant question??? beemerxi is directly on point. and you know he's right....
        re #1) - You know specifically that a hedge removes downside risk and allows a profit if the commodity rises in price - and yes, the profits are capped at a certain level, but it definitely adds to the bottom line, so yes, it would make a difference if the gas price went up...
        in re #2) - you know a monthly dividend would reduce volativity and minimize the quarterly play on a dividend paying stock... (You have played the divvy game just like others and myself have, so yes, there would be a difference...
        in re #3) - as per beemerxi - see #1 - if increase in demand occurs, a reciprocal appreciation occurs..
        Why the need to be so negative??? The very idea of a hedge, which you find so negative, is an insurance policy against market volativity going south....

30.20+0.12(+0.40%)Sep 19 4:15 PMEDT

Trending Tickers

Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.