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Fifth Street Finance Corp. Message Board

  • thewisejman thewisejman Jun 27, 2013 3:11 PM Flag

    Getting ready to buy LINE

    again, looks like it is dropping again. So is its sister stock LNCO.

    On the day the market jumps, they drop, very interesting. If they drop enough, I will get some.

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    • LINE has been under a short attack. On Dec 31 there were about 3.5 million shares short; as of June 14 there were over 11 million short. Two weeks ago, Barron's posted its third negative article this year (by same person and basically the same story/argument). Shorts came out big time and drove the price down to under $30. Some large long-term funds (e.g. Cooperman's Omega Advisors) and media (The Street) came out with counter-attacks saying they analyzed LINE and found nothing wrong.

      Yesterday, there was one negative Seeking Alpha article. It was not very convencing, but that may have been enough for another small short attack. Hence today's drop in price. (Easy thing to do on an otherwise low volume day.)

      Per LINN and Barry management, the merger is still a "go." Shareholders will vote on it sometime in late July. If successful, I expect to see a lot of short covering. Until then, shorts have considerable money invested in seeing that merger get de-railed -- so we may see more negative "news" followed by more short selling.

      Personally, I do not think that the shorts have any chance. BRY is 10% owned by insiders; Fidelity owns another 15%; and several other institutional investors (e.g. Omega) own a large amount. Institutional investors have access to professional accountants and research analysts, and my understanding is that the merger is good for both BRY and LINN.

      FYI: LINE/LNCO will announce the first monthly dividend in a few weeks.

      I'm in LINE at $35.50; I'm not worried.

    • Wiseman: keep in mind , LINE has had a good run in the last 10 days ???
      Any thoughts RE: FSC ????

4.88-0.06(-1.21%)Jun 24 4:00 PMEDT