Well, after a good night's rest and a fresh cup of coffee this morning, great to wake up to yet another lovely article published by SA (yeah, whatever), I have great confidence that the merger between Berry and LINE will be completed and in response, the stock price will JUMP, probably a bunch, and when it does, all these folks selling short will have regrets. I'm expecting large gains in a short timeframe! I'm certainly hanging in there for a week and a half and likely far beyond. Best I can decipher after my best reading of the ammended S4, there is no substantial change -- it's all semantics!! When the merger takes place, the Permian acquisition takes place, and the stock price jumps -- the dividend/distribution will also go up with it. I'm actually quite excited to own shares of LNCO right now!!
Despite the incredibly biased article from SA this morning, the results very simply look like a reconfiguring of some accounting methods areas that the SEC didn't like. LINN will move towards something the SEC likes better, more toward the GAAP side, stop using some phrases and generally have to restate some numbers for previous earnings reports.
But there is nothing that sounds like overt and intentional misrepresentation that will warrant some major action against LINN. Every company has, and uses, latitude in how it operates and represents its numbers. There is nothing illegal in that. Non-GAAP appraoches are not illegal in general. Everyone should know that the SEC will almost never inquire about some company's approaches without making some changes. It almost has to just to justify it's existence. Here the changes appear to be minor and without major repercussions to LINN.
No mention of illegality. No mention of serious actions to be undertaken. No mentions of defrauding investors. No mentions of a deeper SEC investigation. No mention of executives being arrested. No mention of not proceeding with future land purchases. No mention of denying the merger with Barry. No mention of reduced distributions. In fact no mention of anything but some minor accounting principles and possible restatements.
Shorts have again jumped on this report and investor's emotions. It is now a great time to buy low and enjoy the rise upward.