Sec has given the go ahead for the deal. They said they are done. Is the BRY deal priced in already. Is this MLP broken. Are investors still skeptical about the deal and how much more LINE had to pay out for BRY. Something isn't adding up.
Opie, What has LINE done since the PPS was $39-$40? That high PPS was when LINE paid a QT Distribution.Traders bid the price up for the Distribution run. There was no June Distribution when LINE switched to Monthly. As you remember the PPS started a decline. Hedgeeye and Barrons noted the weakness and dug in and the SEC thingy came to the front. Any PPS rise will be earned by closing the merger,reporting good earnings and keeping its nose clean. Its not going to recover overnight.
Relax. Enjoy your monthly payout check. In its quarterly report, LINE management hinted at a December payout increase. Broken companies do not pay cash to unit holders and they do not increase cash pay outs.
Sentiment: Strong Buy
MLPs simply are "not in favor" right now. For some reason they seem to run in streaks and right now MLPs are on a "COLD" streak but they will return and most likely when they do, it will be a nice rally for MLPs.(at least the good ones)
Why? Several reasons
- SEC still has an open investigation into their accounting practices
- shareholders have yet to vote on the transaction
- the deal hasnt closed
- although they covered the distribution in q3, it remains to be seen if this will continue.
- the transaction is more expensive than originally initiated.
- they(Linn mgmt) have backtracked on their previous statement of increasing the divvy to 3.08 after the close of the bry deal. They now say something to the effect of lets see how things pan out going into next year.
Im actually pleased with the current share price and have been increasing holdings. Once we clear the sec, the deal, the divvy increase, and consistently cover the dist in earnings, its probably going to be in the mid to high $30's again. But for now, enjoy your 10% paychecks and load up.
dancingbear, you have entered into a battle of wits with an unarmed man. You have proven your point yet he continues to argue. You shold be commended for your patience, but I put him on ignore 2 aliases ago. Hope you don't mind, but I borrowed your quotes to use in another similar argument. Although I don't know why I bothered. Just like yours, mine will never admit to being wrong.