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Linn Energy, LLC Message Board

  • lizahuang54333 lizahuang54333 Aug 10, 2012 10:27 AM Flag

    The flipside of IDRs

    Some here love to disparage anything associated with IDRs. What is usually not mentiones though is that the incentive distribution thresholds often come coupled with subordination thresholds (at least in the early years). In a similar way that the incentive thresholds advantage the general partner, the subordination thresholds protect the limited unit holders. In fact, Jack's entire investment strategy in OXF is predicated on those subordination thresholds. Several of the newer trusts like CHKR and ECT would have paid below the subordination threshold this quarter if not for that protection. Seems disingenious of Jack to say that IDRs are evil when they are combined with thresholds at the other end that provide protection. Think of it as a kind of hedge collar for unitholders.

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    • We were talking about OXF.

    • I do not know what you are talking about or to who...


      But, if you are talking about Linn energy....The Distribution coverage for Linn for the rest of the year is clearly mentioned at the bottom of slide #20 in their Enercom presentation of today....and, it looks pretty good to me.

      http://www.vcall.com/console/ConsoleFrameset.asp?ID=169393&brand=Vcall&ClickType=&playerID=1&urlID=174652&sessionID=4B3AE05788E84D46&email=&tck=LINE



      You would also like slide #18.

    • None of which is new. Distribution coverage issue has been there for several quarters and is the reason the price is where it is and the yield as high as it is.

      Sounds like the main thing for you is increased probability of Obama re-election. And you're right. There ain't gonna be no president Romney. But I told you that months ago.

    • One more little tidit.

      Lisa caught Jack on another double standard. With this IDR crap.

      Jack says don't buy these types of MLP's. Then turns right around and buys them. Do you not see a flaw in Jacks representation and doing what he advices others not to do. In court you would call the man guilty of false advice.

    • No lets not. Because my investments are just fine.

      But your IF needs some training.

      Gambling is engaging in games with a negative pay out probability//[Not always for you gambled on WMT and T} I gambled on S and ARNA} and all 4 worked. Debunked again.

      The deluded like you might actually believe you can time it but only rational people are capable of investing.

      This is really a dumb statement on your part> WE both proved that taking a gamble on certain stocks works.

      So again debunked.

      Jack played a game. he gave out all the positives on OXF and then sold on turniong the positives into negatives. That is called working a stock and the board.

    • Jack sold on the same premises for which he bought OXF.

      Go back and read carefully and absorb what was said.

      It is insulting especially since he said ko one created their own business.

      But red tape will always exist in washington. Wht because of behind the curtain deals.

      So come out of your Mitt obsession and he has some good ideas. But as i said he can't snap his fingers and change everything all at once. You know this and i know this to be fact.

    • Opinions,
      Let us replay investment 101 training for you again.
      Investing requires a positive pay out probability distribution. Those that follow the Graham and Dodd fundamental valuation methodology can beat the averages over time.
      Gambling is engaging in games with a negative pay out probability.
      There are stocks like Stagg the corn monster buys with high trailing distributions and very unstable fundamentals. He and his troopers believe they can time the market which all research proves is delusion. Research also proves once you get into these ‘high yielders’ the market is not efficient and the expected payout is negative over time.

      There are not different types of stocks. There are investors and there are gambling speculators. Further within gambling speculators there are compulsive gamblers who believe in their ‘luck’ and there are enough of them to build Vegas. If the financial product salesman who claim expenses do not matter do not hook them up before they can plan the trip to Vegas.

      Buying an over priced stock because you believe others will pay more in the future is not investing. The deluded like you might actually believe you can time it but only rational people are capable of investing.

    • Oh OPinions,

      Jack stated clearly why he changed his mind. If I understood correctly it was risk level not random price movement like Ron^3 basis his opinions on.

      By definition buying and selling investments for fundamental reasons is not trading even if the frequency becomes active.

      Red tape? Not if Americans finally do what Democrats should have done long ago based on his abuse of power - retire Harry Reid.

      As food prices explode next year and the dishonored media has no reason to protect Obama any longer, general public awareness of ethanol corruptions role in massive food infaltion will build.

      The clown at the renewable fuel crony capitalist political group has way over played his hand to the level of clear and insulting absurdity.

    • Nice avoidence again...............I am glad i amusing. You on the other hand are being your scrupulous self, as always.


      IF your investing on the IF way you are gambling more than you think you are.

      Know wonder you keep selling out of stocks.

    • Opinions,
      IF is how all real investors work as we discount future cash flow. Contrary to dark ages occult theory on this board, the market works by discounting future cash flows.
      You really are amusing this morning! Thank you!
      No, there are not rational people awaiting your investment opinions. Clearly this does not include OLB members who claim spurious back fitting is a matter of opinion rational or irrational not important!

      So no one is surprised all OLB members are Progressives

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