And now, spread is 1.60 pps. -- largest spread I can remember since merger. Still ops is up over 7% since merger completion plus two dividends. Not bad for 2 months. I'm pretty happy with the slow, steady growth.
Today LNCO has fallen a little behind on the spread. As I watch LINE move forward, that to me is a signal to buy somemore LNCO, which I did today at $31.96. Every share of LNCO has one share of LINE behind it so as Carl Ichan would say, it appears to be a "no-brainer". GLTA
Well, we were $1.50 behind the other day. Friday the gap was down to $ 1.20. Today, it looks like it's going to close more and I think LNCO will be at a premium over LINE in a couple of weeks. GLTA
LNCO & LINE may never trade in tandem. KMP & KMR never has, EEP & EEQ never has.
Both have sort of similar structures with Partnerships v. Corperations.
Its just the way it is. Years of reasoning has never solved the differences.
With the higher div yield favoring the discounted pps, it beomes somewhat immaterial, albeit an academic discussion.
Sentiment: Strong Buy
Made some progress today. Went from a spread of about $1.50 to about $1.20 on the close. LNCO is the better stock to own here and I still think it will go back to a premium over LINE. Not back to the $4 premium pre merger but still a small premium over LINE. GLTA
nope, I expect lnco to trade at a slight discount to line. doesn't make sense, but price action since completion of berry merger is confirming.
Might be as simple as supply and demand with the increased float.
Interesting, but my question is why? In the recent past there was always a premium for Lnco over Line. My only guess is that it is a result of the merger and so many extra Lnco shares floating around that it has put selling pressure on the pps. Any other thoughts on this?
Hard to imagine why.........I think that the distributions on both are treated a "return of capital' for tax purposes......as I recall, all of LNCO's distributions for 2013 have been pre-announced as such.....so, it must be the supply of shares brought on by the BRY merger as others have discussed on this board......but, then, hasn't LNCO almost always traded lower than LINE, since it was created????
Your reason has been floated on these threads for weeks & seems like only culpable one out there! Former Berry holders awarded LNCO shares for merger cashing out for whatever reasoning! Makes sense!