Actually Oppenheimer made a negative comment a few days ago on the 4th that you must have missed. They said, "Despite optimism surrounding Berry and the Permian acreage, we continue to believe the same core issues plague the company, including high decline rates and significantly under-reported maintenance capital spending."
Was this another hit piece? Decline rates are just one piece of the puzzle that determines the economics of a well and Linn had all ready decided to drop the use of DCF to complete its merger with Berry so what was Oppies point?
Could be. Two big down days on no news, difficult to lay it off to a delayed reaction on the distribution being static, or less than stellar 2014 guidance. Still, it shows how weak the company is right now in the eyes of the market, lots of weak hands, toasted fingers. It may take 2015 before this gets back to anything approaching "normal" in terns of price to yield, or perhaps the 7% days are pretty much gone for good, the damage to reputation too extensive. We might have to live with an 8-9% yield in the market place.
I agree cooch. Sadly, for now, Linn's reputation was knocked down significantly this past year, making it too risky to jump in for 7% yield. I wouldn't buy it for that presently. I'm still holding shares of LNCO, but did sell down my position recently and am going for growth in other places. My LNCO shares were a part of my growth portion of my portfolio. I redesigned to my conservative section and will still enjoy the monthly divs. Still solid on that front. I'll take 10% in the conservative section of my portfolio!! I personally don't think there's too much risk at these prices. It will take big news to move it up much from here though.