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Linn Energy, LLC Message Board

  • jackrothaus jackrothaus Mar 13, 2013 10:12 AM Flag

    I'm Seeking Legal Advice

    For some reason, the issuance of LNCO shares have destroyed share holder value in LINE as can be seen by LINE's under performance relative to LNCO. As a long time share holder, I'm seeking legal advice to possibly sue Line Energy.

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    • Or the opposite has occurred: The absence of dizzying K-1 complexities has made LNCO considerably more attractive than LINE to many investors. Moreover, there are institutions which can purchase LNCO but not an MLP. Additionally, value can be determined by investors' needs. I hold LINE in my and my wife's IRAs. My primary interest is the distribution, which is more attractive with LINE than it is with LNCO. I think that it would be much easier to demonstrate that LINE is underpriced than that the creation of LNCO has caused deterioration in Linn's shareholder value. Finally, consider what might be the shareholder value of LinnCo when its corporate taxes rise several years out.

    • my legal advice is don't hire a lawyer

      issuance of LNCO is arguably funding acquisitions fueling the growth of LINE distribution

      as a long term shareholder you know LINE has been rangebound since the Fall of 2009; LNCO has not changed that:

      the day LNCO was issued 5 months ago, LINE opened at 39.96; accounting for the 2 distributions and the drop in share price since then (and do not forget the sharp rise in short interest and the short attacks occuring since then as well) you are down 1% and LINE's fundamentals (for ex, debt/EBITDA) are showing improvement

    • Not true. Each share of LNCO is just a wrapper around one partnership unit.

      The most likely explanation is individual investors have been made gun shy by all the short attacks and RLP'D/OLB delusional posting on the board.

      As the LNCO has a wider pool of investors; including institutional investors, it is more likely to have the efficient price.

      As result informed individual investors have a very nice discount to benefit from.

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