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Linn Energy, LLC Message Board

  • doug6927 doug6927 Dec 27, 2012 6:17 PM Flag

    I'm getting worried

    PPS has been steadily dropping for a so-called "safe stock". Where will the price settle?

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    • Doug, I'm kind of astonished at your question. Sequestration and a potential recession are lurking just around the corner, numerous other energy companies are getting hit, the term "safe" is a relative one, Congress is virtually dysfunctional, NGL prices are quite weak; and stocks/MLPs/LLCs are all, at bottom, speculative entities. Also, what about govt. oil subsidies next year and the continued maintenance of MLP/LLC structures? Surely you know that all or any of the above become cause for investor apprehension. And an 8% distribution rate while the 10-year treasury bond is way, way lower is certainly an indication of risk. So to answer your question about where the price will settle: It's more likely to bounce than settle, perhaps after a panic blowoff . . . or maybe not. You want high yield, you take your chances. And with a company like Linn Energy you're better off taking a longer view while you collect the income, which should be your primary goal when you own LINE units.

      • 1 Reply to ronharv
      • speculative entities!

        Ah large pipes with take or pay toll contracts tied to real Producer Price Inflation rather than the manipulated CPI are risky! Lower domestic prices which support EPD fraction business and propane export are risky. MLPs are a business structure not an asset class and some benefit from lower prices and negative ethane margins and localized pricing.

        OLB members know better but just continue on like the mental zombies they chose to be.

        "oil subsidies next year and the continued maintenance of MLP/LLC structures?"

        % of depletion is the only special 'subsidy' and it is timing rather than the total of the final tax paid. Elimination of the MLP structure which has worked so well does not deliver the government any material amount of revenue.

        Jackson leaving the EPA is not a plus as Obama could in a second term elect an even more radical person. While more irresponsible and mean spirited EPA regulations like those which destroyed domestic coal are possible. However, LINE is best positioned to withstand it in the long run.

        Ron^3 is most scary as his politics come before any rational investment analysis.

        So he will just keep prattling what he knows is simply wrong like all OLB troopers.

    • Well, the chart guru here says $2 lower than it is now. I would certainly follow his lead, he is never wrong.

      • 2 Replies to rlp2451
      • I can't debate any of you, but why is the stock at a price of an 8.2% yield, unless there is an underlying problem that we know nothing about?

        Sentiment: Strong Buy

      • Is that what was said?

        Did you also miss the part where I said that I thought it was a buy now......and I also mentioned the multiple bottom at $34.....

        but you were probably talking about that chart guru who you thanked for pointing out that they saw a double bottom from Nov 13, at $35.50
        ..............[guess that was not quite right since it closed today at $35.33]......that $35.50 double bottom does not seem to be anywhere near there on Nov 13....right.

        I do not see that one on Nov. 13, so if you can find it then please let us all know.

        But the chart looks like it can still go lower.

        Oh, and what price did Mr. Rockov buy back LINE units when LINE did buy back their units?


        how far is it now from that/those price(s)?

0.18+0.03(+16.13%)May 23 4:00 PMEDT