Darren Schuringla Likes: LINE
I get the price has come down, so we view it as a discounted stock and deal. We actually analyze the downside and that's the difference between just taking the -- what the street is saying or other analysts are saying and looked at it and said if all the problems that have been uncovered by wall street, potential problems, perceived problems as we like to say, the downside was $2.50 distribution. Put a ten cap or 10% distribution, $25 stock. We saw that as the worst downside scenario for Linn Energy. It has an s.e.c. investigation, Berry Petroleum, big acquisition which could drive the stock price up, both came under question.
This past week, Berry coming through, looking good. that takes the stock from $25, we think to $40 based on distribution growth where it's coming from.Tremendous upside potential with relatively little downside. Maybe $25 is kind of a base on the stock where we see it.
BTW... has re-edited the printed dialogue cause cnbc had some big holes in it. This is a more accurate transcript.
Thanks. Dude has it right, I figure, though I think $40 might take longer than he expects. Still, that's a 30% move, and if I held these trading positions for a year, cap gain treatment (mostly), plus I get paid cash money . . . let's see, 30% on the value of my positions, plus the tax differential equals . . . oh my, one heck of a nice boat. Darn, I want the money back, because dry powder is a valuable commodity, but . . .