I've been wondering WHY has LINE shareprice been falling on very high volumne over the past several days. Today I got my answer. To be clear, I"m not upset about the transaction - What gets me angry is that it appears there are select clients that seem to be "in the know" and take advantage of such knowledge, prior to public notice.
What? You mean the select people who bother to read LINE's press releases which have put the information in the public record for months now? Yes, terrible how the people who don't follow their investments are disadvantaged compared with people who spend the time to do their research.
Of course there are people "in the know". Almost all MLP secondaries work this way. KMP is best at keeping the information contained before release. This one has been in the news for some time. The real question is why LINE is trading up this morning when they are selling 35 million units at 36.5. Don't see why or how that can continue?
i love the pricing at $36.50. If i end up getting stock in LNCO at $36.50 which i hope i get allocated shares... it should pop to 38-39. Wall street wants to give layup deals right now, they can't afford investors to have losses right now in the IPO market or the market will dry up again.
Can not speak to the broker allocation. But this was a very disappointing discount given it looks like money in the bank for people who get shares. The low price probably did take a dollar+ off the market prices of the shares due to dilution.
That said the internals to the markets have been very weak. Concerns over earnings. Highly questionable unemployment followed by initial jobless which appears to be released missing the count from a big state, likely California. Head Line wonderful drop reality - Now market or informed Americans cannot trust government data - at all.