Ok I owned Line a few days ago and got out and now it looks like the same thing is happening here. This price has dropped almost 4.00 in the last few days. Is this just a reaction to all MLP's or maybe just LINE's SEC issues?
The herd mentality thinks any MLP that hedges prices is now suspect! In my opinion, all the MLPs are hedging gas prices to stabilize their future incomes. This is perfectly legal, so it must be those hedge funds causing this big sell off. I think we will see some lawsuits on this because they've caused a lot of financial damage to the MLPs, especially LINN (and LNCO). I trust their management knows what they're doing and the SEC will find nothing irregular.
isemperfi1... I still have line as I think there is an extreme overreaction to Line and especially VNR. VNR is extremely oversold. It also is very conservatively hedged out over several years. I bought more this morning. Line on the other hand is more risky and I think it's overblown. However I am not buying more Line yet because there may be more downside risk. If the investigation goes well for Line it will bounce sharply and so fast the average investor has no chance to get it near it's bottom. I think it's safe to buy about 1/4 of what you want now but beware. just a little.
Congrats! I loaded up July 2 and 3, and am greatly in the red. I should have waited but had no idea how strong the herd mentality was. Once selling began it just gained momentum. I hope managers satisfy the SEC and the price soars!
I phoned the company yesterday and Liz Godfrey returned my call in a few minutes. VNR is not like Linn because VNR values their hedges very conservatively. VNR has 152 million barrels of proven oil equivalent reserves and almost 800,000 acres of undeveloped property. VNR purchased a lot of gas property on the cheap. NG will increase in price when transportation transforms to NG. Many companies are doing it now and intimately most trucking and locomotive engines will be NG. (Cummins and GE developing now.) VNR has a bright future. Each share is worth almost three barrels of oil equivalent ($300). Even if you receive 0.03 barrels per share per year, that exceeds the current dividend.
Three days ago Motley Fool recommended VNR as a buy.
Look at the dividend for the past five years-no flash in the pan.
No, I think liz has it right, it obviously started with the LINE nonsense, and I think it's blown into full scale capitulation due to margin calls. Am I concerned? No, VNR has no need to do an offering anytime soon, that would be the only real fallout. It might take awhile for the price to come back up, once burned, twice shy, people might be leery of MLP's for awhile, but these things come and go. Look what happened to Green Mountain and Netflix. I'd rather own VNR any day!!