I have brought more today but jim has not. He indicate he really believes in the company but does not want to catch a falling knife until the stock settles will not buy more. reason is the general MLP pressure and that the company cannot defend itself currently during this "quiet" perior and cannot defend itself. No big catylst seen until around Q3 with BRY deal and also possible credit upgrade by S&P . All this means in the near term could go lower into the mid 20s. before Q3
Was some insider buying of good numbers, however really don't mean it's a strong buy signal. I am going to start buying against the low reached yesterday and feel we going to test it. Short covering and book balancing over the weekend don't mean this bear raid is over. As far as the company buying back it's own stock, I think they are lacking any funds to do so, unless they go to the well again and borrow more money. I do think a risk of a cut in distributions is on the table, plus really hate the monthly payout as it kills any run up plays. A look at the chart makes this sell off look more like just a bump in the road and not a reason to panic. Long term think it's still a good buy.
The risk of a cut seems very unlikely. The increases may slow going forward, as they now have 300+ million units that have to be fed, but a cut in the next 3 or 4 years is highly improbable. Even if gas and oil prices were to plummet, you would likely see a repeat of the '08-'09 strategy, where they keep the distribution flat, stop most drilling and instead focus on highly capital efficient objectives such as well workovers, recompletions and midstream optimization (lowering backpressure via addition of compression).
Now, those kinds of efforts cannot sustain the company. The overall decline rate has crept upwards, in part due to the heavy drilling component that has raised the company average well above the high single digits that is common for "terminal" production that is in the flat part of the curve.
But, the company can survive for a few years simply focus on low hanging fruit if prices were to plummet, which seems unlikely, but is indeed possible as we all know.
Linn's real problem over the past few years has been that they were a victim of their own success.They hedged so far into the future when gas prices were high, that as those hedges rolled off the books, they were forced to rehedge at much lower prices. That necessitated them making billions in acquisitions (accretive acquisitions), with the bulk of the accretive cash going to replace the compressed margins.
Cramer has tweeted many times this afternoon, calling this "criminal manipulation," etc. of #LINE. He's pointed out recent insider buys and more.
You can say what you want about Cramer, but he has a staff who work for him, so he's not a one man show. He may be an entertainer, but if you listen to other stock-pickers, you can do worse. No one has all the answers.
Some people say Cramer gets involved with scams just like this one.
You don't know if he is temporarily supporting the price to help big money get out, or if he will all of a sudden dump his Charitable Trust shares and start trashing your stock.
I've noticed him buy shares (then advertise it to make the share price pop) and dump his position a week later. Then, he announces he sold and your stock falls further. This is why you see people groaning on the message boards when Cramer buys their stock.
Make your decisions based on solid information. A lot of Cramer's suggestions head South, regardless of his staff's efforts. You have to know what you own and have some sense of price--or you are at the mercy of short attacks and scam artists.