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Linn Energy, LLC Message Board

  • gpd8252 gpd8252 Sep 13, 2013 9:50 AM Flag

    Alerian (AMLP)

    They just announced they are adding Sunoco Logistics and dropping LINE from their ETF. Does anyone know how many shares AMLP has in LINE ? LINE is not one of their top ten holding so its less than 4% of their total holdings, which means less than 1 million shares. On Sept 20th they will rebalance so whatever number of shares they hold will get "dumped" on the market. Could be a short term negative.

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    • Look at AMLP and you will find in their constituent index about 92,000 shares of LINE. Perhaps some of those shares were already sold; perhaps not but in light of the volume of trading in LINE that is a very small number of shares.

      I am not sure if they own LINCO shares as well. But not to worry. Sun Logistics is controlled by ETP; from the way I see it; IMHO this is no big deal.

    • If I understand it correctly, the Alerian is simply an INDEX, similar to the Dow Jones 30 or the NASDAQ which simply track the prices of the underlying securities to give a representation of the performance of their market segment, in this case of Large Cap MLP's. They don't own any of the underlying securites.

      Sentiment: Strong Buy

      • 1 Reply to ghondula
      • Nope. Has to do with twisting the term index to sell products. Something many wish the SEC would finally address.

        Megacap index would have GE, Microsoft, CVX so you end up with a sample with relationship to our economy. Weighted one way or another.
        So an index as commonly understood comes with diversification to a very significant degree.

        This Alerian sales product is neither a sector fund nor an index. It is not even logically weighted.

        Shown most clearly by the OLB bringing it and chattering time after time. An upstream energy producer cannot be logically or rational compared to an basket of equity which is primarily pipe.

        In fact the progressive politically disrupted American energy markets are favored by the lack of infrastructure while EPs have disrupted prices far below the known world market price.

        But the OLB lives like a Progressive for irrationality and dissembling to protect their primitive faith of worshiping man.

    • They are replacing it in an index, not in a fund:

      Alerian announced today that following the close of business on Friday, September 20, Sunoco Logistics Partners LP (SXL) will be added to the Alerian Large Cap MLP Index (ALCI).

      Which means they aren't disposing of any units of Linn since an index is simply an index, like the the Dow 30.

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