Linn can't get out of its own way -
All my other energy stocks are up to WAY up - while Linn stumbles along.
What's with that - day after day after day.
Does raise a bit of concern - eh?
Right on Norrishappy!
Jack is a very astute LINE investor. There is just absolutely no doubt about that. When ever anyone offers some doubt, question etc.,Jack consistently reminds everyone of the mere facts and fundamentals involved here...I do not believe at all that he is a cheer leader, and even though he and some of us others have a lot invested in line, he is only offering what is obviously his honest knowledge of the basics fundamentals. After all, if you invest that much in a single entity, you better well know everything you possibly can. I believe he fits that bill better than most, if not all here.
As far as anyone saying or taking slight about/to him, they would be much wiser should they understand that even when he responds to detractors, he offers everyone here an opportunity to either learn something about LINE or how to or where to get more intelligence about it...
To those who who fit that bill, be wise and sit back and learn something...as far as diversification goes, I believe we discussed this over the past two days and we agreed with Jack that LINE has evolved into much like a energy mutual fund, or a annuity,thus the lack of diversification seems justifiable on his part for at least two good reasons.
You are both right. Over about 50 years in the market, I've made many mistakes. Bought some WT Grant as it dropped, not realizing it was going bankrupt. But some Chase Manhattan REIT as it was sinking on presumption that this great old bank would not have formed a high risk loser--which it did. Bought somne of Valero's pipeling MLP, b ut fortunately realized that Valero was buying new shares every quarter to cover the distiribution not covered by income--phew, got out in time.
Linn was conservatively managed by Mike Linn with its multi-year hedging programs that assured the property purchase costs were covered and real income was produced for stable covcerage of the distribution. Under Ellis' new leadership, he has added high growth from property purchases while maintaining the secure income hedging program.
Mike Linn organized this compANY AS AN LLC WITHOUT THE EVIL gp AND ITS IDR THAT CREATES A CONFLICT OF INTEREST WITH ORDINARY UNIT HOLDERS (USNS), AND WITHOUT THE GP THAT CREATES THE RISK OF A CONFLICT OF INTEREST WITH THE GP OWNER. Linn's execs and manager own the same kin of units that we do, so their motivation to succeed is directly in line with ours.
So, I'm not worried about the mil I might lose. I think we are still working off the quick profit sales from the 30 mil units bought below the current market price by the underwriters and their friends.
Not to worry. In the meanwhile, the analysts keep raising the earnings estimates and the target price, as shown in yahoo and Zacks.
Best of luck.
Why does it matter? I hold 200 July calls at a strike of $38 and an intrinsic of $40.57. I have another 1,500 shares. There are others on this board who hold more, much more. I almost bought another 100 calls today, but I would rather buy on a more constructive chart. The bottom line is that the shares are attractively priced ahead of earnings, ahead of the distribution annoucment and ahead of the ex-distribution. I think people will look back and consider this a good opportunity to buy, but clearly anyone could be wrong. I admire Jack for his convictions, postive outlook, solid outlook and unabashsed postive attitude that is always based on solid research. He tells you what he is doing, and that is helpful to all of us. Hats off to Jack!
I have complete symphathy with what you expressed. Line is probably testing a few nerves, particuarly when most MLPs are moving up. Hard to explain other than low volume. I called IR and they said they closed the secondary two weeks ago, but they wouldn't tell me why there was no press release. You might want to hold on for ex-distribution (and earnings/distribution annoucement next week). The ex-dist. likely around May 2 (approximately). Plenty of time.
Can the SO really be that much of an effect on the stock? After so many days, shouldn't the overhang be sold off already?
Every other oil stock is up by 1-2%, and LINE is down by 0.3%? And the selling seems to be relentless, a few thousand every minute, no letup.
Interestingly, EVEP goes up a couple of cents for each cent LINE drops.
Hope there is some new unhedged production coming out of LINE's property. Time for Linn to appear with Cramer again.
Oh well, the yield is up, almost 7% now