A new target price put on BRY is 51.00. Line is offering 45.00 and 1.25 shares of LNCO. Now if OXY is throwing itself into the mix what happens to the deal Linn has thrown out to BRY. This is getting very interesting.
OXY is not throwing itself into the mix. Just the opposite, OXY is looking to exit CA. Putting a $51 price target on a stock is wishful thinking, the same genius that puts a $45 price target on Linn then cuts it to $31 and will probably raise it back to $45. Haven't you figured out yet that these analyst's are 24 year old MBA's that couldn't find an oil field with a map. They just read financials and apply GAAP rules they learned in their Financial Accounting 101 class in MBA school. I wouldn't trade on message board information and I consider message board information better than these analysts.
Not much of a mystery when you consider they originally put the $51 price target on BRY back in June.
Specifically, the analyst says BRY could rebound to 51 as a stand alone company since prices and production have both increased since the merger announcement in February. He also thinks BRY is priced cheap enough today that somebody else will buy it if the LINE deal falls through.
OXY & FCX were mentioned because they are showing a willingness to sell assets in CA. His thought was that their potential exit may provide BRY with a cheap avenue of expansion and had nothing to do with either of those companies forming a hostile bid. In fact that wouldn't make sense considering he feels they are looking to get out of CA.
The better question might be why those companies are looking to exit. Though I really don't think that's much of a mystery, either. CA isn't exactly a welcoming regulatory environment.
You need better rumors, LINE is cash squeezed, would be paying $2.5 billion in cash plus some LNCO stock. Let's see that would move debt up to $9 billion. That would be great way to move the units well into the teens. And BRY is small potatoes for OXY, wouldn't move the needle, they might buy Pioneer.
Not a rumor you can check yahoo for my correct information. BRY being small potatoes would be easy pickings for OXY. My concern is why come out with a new target price on BRY at 51.00 knowing a deal is trying to done between Linn and BRY