I believe the stock will open at least down to $23.00/share due to new Barron's article indicating Line only worth $18.00 share. Hopefully, I am wrong as I am buried very deeply in this stock, but hanging in.
Good luck to my fellow investors.
I have been bashing people in this thread for getting the X Dividend date wrong. It turns out that I was wrong and would like to apologize. Since there seems to be a lot of confusion, I went to LINN's website and retrieved the following information: X-Dividend Date was Thursday, August 8, 2013. Once again I apologize to anyone I may have offended. Just sayin'............
Sentiment: Strong Buy
just goes to show you we would all be better off reading real information (company website etc) than wasting time on these boards. by all I include myself but these boards are addicting
Let me see if I understand your reasoning. On May 4 Barrons assigned LINE a book value of $17/share. On 8/10, they RAISED it to $18/share, and that is going to make the stock drop? Also, on Friday, LNCO was pulling LINE up, and it is primarily traded by institutions. Finally, the stock goes ex-dividend at the end of the day on Monday. It would appear that the confluence of these factors would cause the stock to be up tomorrow.
Let me see, The change in book value is a combination of rounding and the non cash gain on their derivative position, which doesn't have any net economic value because it is offset by lower natural gas prices. lnco trades higher due to the fact it is harder to short than Line and should trade at a discount to Line as kmr trades vs. kmp. The stock went ex dividend last Wednesday. So you see there is no confluence of factors to cause the stock to be up tomorrow. I am not forecasting that it will go up or down tomorrow, just trying to keep the record straight.
Same thing they have said for nearly a year. Not new information and should be a point of view current shareholders have considered. Still, a lot of smart people have the NAV pegged at $40 per share and PT's in the mid- to upper-$30 range (e.g. Goldman Sachs, Raymond James). GLTA
Do Goldman Sachs or Raymond James have a dog in the Linn/Berry deal?
It doesn't matter what they think at all. What matters is how poor their last earnings report showed. An E&P MLP does not have the luxury of delivering big increases in production and show the inability to cover their distribution. To show those increases in production means Linn must show extraordinary increases in production without setting off a chain of higher prices to produce in the process.
MLPs are better suited for G&P and pipelines where fixed revenues without the same concerns for commodity pricing, hedging, and worries about higher production rates of the E&P MLPs can be avoided.