I am overweighted with Linn shares with a average cost basis of around $25 (not including about 2 years of distributions) and would like anyones input on buying more shares of what most of you think is a artificially low share price. Risk/reward scenario? Thanks
The risk is more negative press forcing you to cut your overweight position at low prices. I think LINE is a great long term hold from the current price. I suggest you consider using options to go long, either buying calls or selling puts at a strike you want to buy at, or both.
My strategy has been to buy below $25 with the idea that there is no way of knowing for certain that the BRY merger will close, although I suspect it will, and that Linn at $25 is a good deal even if they cut the distribution. If you buy below $25 and the merger does close, you will have a nice gain. I am hoping LINEwill go to $23.50 and perhaps lower if there is some kind of shock. I bought 2,000 shares today at $24.05.