I started the year with a small $50K position in LINE and ended with nearly a 100K profit in units and 2016 calls (so far), and another $40K or so in cash from intermediate trading when it was up and down in the $20's. Without Hedgeye and Barrons, none of that would have happened, never mind the money I made in collateral damage, particularly in BBEP, where I just killed. What can I say, thanks Kevin, you made my year. Now go get run over by a Zamboni.
awesome ruby. great time to reflect. yep, thanks to kk, i increased my position in LINE from 2,000 to 10,000 shares- brought my avg cost per share down significantly. never sold a share, so i think my low basis will benefit me for years, thanks kevin! in fact, i love kk so much, and have such a low opinion of his "research", that i followed him into KMP and now have another nice holding at a bargain price.
Is Kevin Kaiser still at Hedgeye. I did not see his picture under the "about ' on hedgeye website I don't remember if he ever showed up as he might not have been eligible for a face page.
Congrats, Ruby. Those who can invest heavily in "crisis" situations, generally reap tremendous rewards. Yes, it is a matter of timing and luck, and of course, entry points. One has to build a position with discipline and conviction and stick to the plan through thick and thin. How often in this "Line" saga, as it played out over the course of last six months, many of us had second thoughts and doubts about our decisions? It is not easy, but contrarian investing is soundly profitable and has super sweet rewards in the end. Good luck to you and everyone long Line or Lnco. As I have posted before, I switched my Line to Lnco and doubled my position. Very happy with the outcome so far.
Very nice, Ruby. Congrats. Your boldness was very rewarding and your Zamboni one-liner a hoot. Buying fear and selling into euphoria can be an excellent strategy when the extremes are unjustified.
As I said ones success is anothers defeat. Others took loses at anothers ploy to blow up a stock. But welcome to the real world. Yes ruby, you even gave us profit numbers as well. I wonder if the ones who lost will do the same.
Ones luck vs anothers disaster. This is how the market works now.
Well, he made a name for himself, especially attacking Richard Kinder. The great thing about being a sell side analyst is that there is no actual accountability. You can simply make big bold calls (see: Meredith Whitney), get a lot of press and maybe some short term market reactions, and a year or two later no one will care that your call didn't pan out in the long run, but they will still remember your name as the one who makes big bold calls.
Personally, I think he's somewhat right about MLPs. There is a bubble and they pay out way too much in distributions -- which is why you see them issuing shares so often, just to raise cash or to make acquisitions. Higher interest rates will change that in a couple of years. But I don't think it's a good idea to short MLPs, because you can't very long for the bear case to play out. So in that sense, he's very wrong. I expect MLPs to do well (even if it's a bubble) for a couple more years.
understanding the difference between buying to maintain a distribution is a huge assumption I see line as a consolidator of assets that no longer fit some comp profile they use the money to maximize their drilling while line and other co buy the assets and milk them in a lot of cases line buys property from others who are in financial bind so they get the cash they need to cont their high powered exploration while line gets an asset sometimes at a big discount that they milk for yrs in some cases many yrs such as the long life assets they bought from a troubled bp
Longer than that, I don't know where the lines cross on the chart, where you can't make accretive acquisitions any longer given the expanding base of legacy unit holders, but none of these upstreams have even reached the point where the reserves acquired by the initial unit holders are running out, that's many years away, and that's a relatively small slice of the pie anyway. I would guess this upstream game could go on for a couple of decades before cracks started to appear in the walls. That's probably longer than I have left, so I'll leave that problem to my heirs!