Got a whole lot of red on my screen again today so I realize we are not alone.
Why is LNCO taking such a butt kicking today? The Portuguese bank, Fed's buying ending, a big correction or are we in the mist of the great sell-off Faber and his lot are always predicting. LNCO's divvy should shelter us from some of this mania.
Oh no. This happens every year when the speculators take a break. Therefore the price of oil and all other by products produced. NG in pricing is falling as well. And Linn has decided in the past 2 deals to go" more NG then Oil". these deals will hurt Linn. for a short amount of time. JMO
I hope it keeps going down. It gives us a great opportunity to buy more. It is as close to a safe guaranteed 9.8 percent return that you can get, with distribution increases on the horizon. Paying dividends monthly makes things better. It won't see 25 again. I could be wrong. I quite often am.
I do not see a distribution increase in the short term (1 year or so).
Too much work to do first.
We still cover the Divi and CapEx, but not much.
Need to get stuff sold to cover the Devon Purchase.
I am very long in the stock, and IMHO I think this could average 15% per year between increase in price, and Divi's.
Its summer, lower volume, higher volatility, the energy sector had a terrific run this year, a pullback is healthy and creates an opportunity in what otherwise is a bull market with a terrific long term energy revolution and opportunity in the US.
I am adding to various energy holdings I already have (LNCO one of the largest) and buying into some new ones (BWP, WMB, WLL).
Nothing goes up or down in a straight line guys, enjoy the dividend and the opportunity of slightly lower prices, frankly, I am hoping to get even better prices on the sector this summer but not sure that will happen which is why I am carefully accumulating now.
It looks like we are going to close with a $29 handle today.......I'm glad I sold 2/3 of my position yesterday......will we see $25 again this summer......this sells off every summer......I'll buy back in on the sell off......EOM
I've often wondered why my largest holdings always cause me angst. Then I realized my thesis is to buy good companies that have fallen out of favor for, imho, unwarranted reasons. And....just because I bought it cheap, and the bad news did not pan out....doesn't mean the price will immediately go up and I'll live happily ever after. It's a trench war out there and you better gird the loins to survive. We are retail, and the 'smart/big money' use us as their contrary indicator and purposely make moves to extricate us from our money. They buy data from brokerage services which plot the purchases & sales of retail investors. If you don't think it's a knife fight out there...then you need to think twice. I hope I don't sound paranoid...I love this effing game.
Chigurr, I got to believe you as I do and feel the same. LNCO is my biggest single holding. So far it has been real good to me and if I liked it at $31 then I guess I should love it at $29. I feel a little uncomfortable doing it-as 8k shares seems near my risk tolerance limit-but, I am prepared to pick up another 1k shares on Monday. I was going to add more ARP with it's 11+% divvy and maybe I still will but, LNCO IMHO has more growth potential and now pays near 10%. It is tough to make money consistently in the market. What's that old saying: "if it was easy everyone would be doing it."
Good luck fellow longs.