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Linn Energy, LLC (LINE) Message Board

  • fezzywigsattitude fezzywigsattitude Oct 24, 2013 9:26 PM Flag

    Reading whole section of 10k

    Dealing with merger I do not see angst or change in tone only restating the end date wording.This 10k was put out in ample time and would have been reacted to.We will see but I think its much to do about nothing.The big move will be SEC driven not this.

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    • Why would they have even included it in the 10Q if they didn't think it was an issue?

      • 2 Replies to rlp2451
      • Right, it's a Q, not a K, as some have said. Anyway, two questions. First, was this same language included in last quarter's filing? The answer is . . . (checking) . . . nope, it is not. Troubling, if it was merely boilerplate, why was it omitted from Q2? Well, it could be innocent, after all, October 31 was not around the corner at the end of Q2.

        Second question. If Berry management has been listening to the siren song of the "your worth more without the deal" folk, and I'm not sure they are, the stock was in the $30's, wouldn't LINE management be aware of that, and acted before now? Why even file the amended S-4, if you knew the deadline would pass and Heinemann wasn't returning your calls? Surely LINE middle managers and operations people have been working transition details out during this time, if the Berry guys started begging off from attending meetings, that would be noticed. And bad news goes down much easier the quicker you can get it out there. Maybe they could have negotiated a slightly better deal, or agreed to split the penalty and let them walk.

        What is Berry worth as a stand-alone fruit (if you get that reference . . . salut!). Let's try earnings for starters, say $3.20 annualized, based on the last six months, $1.2 billion in revenues. I know earnings for an energy company, not the best, but just for giggles. How about SGY? They made about $3.20 per share annualized, very close indeed, on just under a billion in revenues (which doesn't mean much, as we're talking per share). The current price of SGY? $36 (up smartly today, too), just about where BRY was trading before the deal was announced. And now Berry's suppose to be worth more than $50? Really?

        Still, dangerous talk, the press won't be good, and tomorrow is going to be down, down, down. My fault for not protecting myself earlier in the week, I'm not sure anything can be done now. And, lord dog, why charts are worthless in dealing with event-driven securities.

      • As a former CEO of a public company, I can tell you that lots of things get included in public documents that no one expects to ever happen, yet cover the bases. Just read the Risk Factors in the S-4. No one in their right mind would invest in anything if they thought the Risk Factors represented reality. But, in the litigious society we live in, they are necessary protection.

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