Interesting theory from another board;
...I think its safe to say now that the put premium treatment was wrong, and Linn converting to swaps is an admission of that.
Even though they state publicly otherwise (it causes "market confusion") one wonders if by stopping the practice it was an admission of wrongdoing?
The only reason LINE would change is because it's no longer in the best interest of the Company and the shareholders; if the risk threshold analysis said it made sense they would keep charging on. As a recent insider, I would say that there are materially more SEC probes than is ever reported. This one is interesting because of timing Berry deal etc. There's no public data that will show that LINE isn't doing what is in the best interest of the shareholders given the volatile business they are in. I expect LINE will be vindicated, the management team seems to be above board. I am long 12,000 shares so no small bet. I think all of the angst is a waste of time. The Company is much more valuable than all of the financial puts-and-takes.
More nonsense from Rlp starve human beings for Obama's Progressive Corn ethanol political corruption -
As a non-Gaap measure there are not specific rules from the GAAP Board and therefore the SEC.
Fact is capitalizing the put premiums is reasonable treatment. The SEC would have to prove material misstatement, which is simply not the case.
All we have here is a completely successful bear raid which managed to bring in Obama's Progressive SEC at a critical moment of weakness. As has gone on all across our Obama agenda government with their public enemies.
Even Hedgeye does not dispute that the future cash flow from the hedge portfolio is real and coming. Only that some small portion is really a return of capital. Puts were some what less than half the portfolio and any premium above strip a very small portion of intrinsic value.
I can afford to wait this out and will. The discount is due to the uncertainty complete immoral Yale clown created rather than a change in intrinsic value. BRY deal was a short term bridge and it would be silly to assume it was worth $10 a unit or more.
But I am sure you will continue to engage and post mindless hear say that you will not defend as it reflects your feelings.
In the mean time a good solid domestic American energy company gainfully employing thousands of Americans has been stopped dead in its tracks. Folks wonder why Progressive Europe is and has been such a mess for two generations slowly walking into cultural and economic oblivion.
The recent story of LINN Energy reflects the realities of crony capitalism and the immoral relativism you embrace in public.
What have you gained from all this? Nothing. Nor am I sure in a few years LINE will not be all the way back either. The closer we get to the end of OBama's term, the more likely commodities will begin to rally of our economy allowed to grow normally. Plus mature rational and scientific energy policy based on natural gas actually reducing co2.
I dont think so. They were getting so much heat from the strategy they decided to stop. However if the strategy was successful why stop. If the accounting treatment was incorrect, the the company restates the financials, or if the company folds (another enron) then we sue the accountants KPMG. Im sure the accountants are working with the SEC but I think the SEC should also look at Hedgeye at the same time. Barrons should be independent, three negative articles on Linn is excessive and it raises another question who wrote the articles and what imput did Hedgeye have.
Maybe Chesapeake should be looking at them and maybe after the merger. Or would this force a buyout of Lnco before the merger. Does anyone know if the deal is cancelled how much Lnco would have to pay and what would trigger the payment. This is a big distraction on the day to day operations.
Im sure KPMG has their ducks in order and will be on top of this. If they are in compliance with GAAP then Hedgeye cant do a thing. I think Lnco should file a libel and slander lawsuit against certain people. Take the offensive guys. Im staying tuned.