The stock has declined why exactly? Cyprus? Really?
As a purely domestic play, it is one of the few industries not exposed to banks or foreign currencies. Relative to LNCO, which continues to exhibit strength, LINE is grossly undervalued at this point IMO.
The second quarter has historically proven to be the strongest for the oil & gas industry generally and LINE specifically. There's no reason to think it will be any different this time.
The dividend was 32 cents per quarter in May, 2006. Since then it's risen to the current 72.5 cents per quarter, and has never been dropped. They never even dropped it during the 2008-09 crash. So I don't know why anybody would be concerned about the dividend getting dropped. It should, on the contrary, continue to get raised.
Sentiment: Strong Buy
If you read Lott's article pumping PSE and a lot of the comments you get the bear side.But even Lott says expensing hedges gives line a .92 coverage ratio and worst case 31.5 to 34.5.White's article today has the bull side of the hedge controversy.I think it boils down to what I stated in my comment to White's and lott's articles:if Linn's cost of capital is low enough then if the acquisitions have a cap rate of 2-3 times the cost of capital then Linn has a sustainable business model.Best advice read the articles and comments
I have seen drops before but it was usually when actual newes of new issue of stocks. I think it is the fact that LINE has gotten into huge debt. Wish I could see an insider buy at this stock price! It would give us the courage to buy more. but as of now I am reducing my position .
which is great because it always gives you an opportunity to reinvest dividends or increase position and collect that 7.9% divy. I don't care if this stock every gains more than 2% a year with that dividend
Surely the hedge fund that's indicting Linn for lying about its DCF since it's inception (just what the prior short sellers did) are fear mongering, as is their wont. They dishonestly create the smoke and make money by convincing enough people that there must be a fire. Let's hope that Linn is quick enough on the draw to contradict (as they did re the last attack) the shorters' accusations.
LINE/LNCO just went ex-div which means no point in owning for almost the next 3 months. Absense of buyers and normal selling means stock goes down. Its that simple. This is normal for this stock. Think of it as a buying opportunity, wait for the bottom and buy.
Line went xdiv seven weeks ago, hardly "just went ex-div", which means now is the time to accumulate for the next run. I hope it gets run down for another week right into my waiting net, and not true about the 3 months estimate. That's okay, I miss dates all the efn time. Too many irons.
I totaly agree, with the price of nat gas also moving up, wwhich has to be somehat poaitive for line , or is it negative because they have hedged at prices not too much higher than the current nat gas price?
Could it be a cross between potentially higher interest rates (mortgage interest rates are rising) and fear of gov't interference along with too many companies considering going the MLP or LLC route?
But even if mortgage rates are rising, fixed rate issues like CDs still aren't going to have a rate of return anywhere close to MLPs like LINE.
If you want a similar example, look no further than ETP. ETP acquired Sunoco and had to digest the acquisition. Now that ETP has done so, at $48, it is at or near a high for the past year.
Once the Berry Petroleum acquisition is complete, I believe it will eventually be reflected in the stock price much like ETP has been experiecing over the past few months.