I'd guess that LINE is down beyond the price of its distribution because of expectations that a secondary offering is coming up. It's only a matter of timing (February? March?). The company does need to reduce its debt, as, in my view, they're too heavily leveraged. Still, Linn may well use the cash for an acquisition. Or maybe a little of both. In any case, uncertainty is afoot, and that tends to exert bearish pressure. Also, there's the 2/27 earnings announcement coming up and that's another unknown. I don't think LINE, in the shorter term, is liable to bounce up meaningfully from here. Could happen, of course, but if it slips a couple of points lower, I see that as a chance to buy ITM calls and/or sell OTM puts. And if it pops smartly higher based on the end-of-month announcement, that presents a shot at selling covered calls for a decent price. Finally, as far as LNCO goes, I see its PPS vis a vis LINE as an anomaly.
Linn does not need to reduce debt, they just need to lower the debt to ebitda ratio. It makes far more sense to issue equity to acquire assets that boost ebitda. That tips the ratio back towards the 3.0x target. I would not expect Linn to reduce debt..in fact, I expect it to continue to grow but only once they have gotten the ratio back in check and thereafter I would expect it to be balanced..with deals being financed between equity issuances and debt in such a ratio as to avoid the excessive leverage.
The LNCO offering was already successfully used to reduce their debt to keep it within acceptable levels for a growing MLP. Any upcoming secondaries will most likely be in conjunction with new acquisitions, and not to reduce debt further.
If you look at a 2 year chart,line and etp typically lose up to 3 points after ex date.Lot's of put buying going on.I'm not counting on the drop cause these MLPS have been on a roll lately,KMP actually traded up on it's ex date.
are you for real? you have NO business investing IF you don't even know that today is ex-Divy and LINE pays out 73 cents per share in dividends. Really, stick to savings accounts.
Sentiment: Strong Buy
Well hole in five, I guess that Ex-divy should make sense but it is down a total of $1.34 from yesterdays close, not just the .725 divy. And LNCO is up .18 today or only down .53 from yesterdays close . They are both trading Ex divy today but going in opposite directions. My point is that just because you trade ex-divy does not mean a stock should down. Maybe you should stick to savings accounts?
its the lack of news/info that always bugs people. Ex divi day doesn't hold any "rules" that I know of other than the lower amount due to the div. I did pick up some more today... as my money didn't settle there before the div. So I waited til today. Figure with the lower price is like a div of its own.