Out this morning. No price target provided by FlyOnTheWall. I presume this means they feel the same about LINE since they are pretty much one in the same.
Americans think in terms of Christmas. Chinese think in terms of Chinese New Year (January 31, 2014). CM will have a deal in plenty of time to capitalize on the Chinese New Year sales. They aren't taking iPhone pre-orders for the fun of it. GLTA
The mechanics of these large stock deals seem to almost always result in weakness for days or weeks. I don't entirely understand why, but look at LRCX and ETN last year or two. Down for awhile (freaking everyone out as to why), then, up huge in both cases as synergies begin to play out. And, part of the pressure on LNCO stock probably is BRY insiders diversifying their large, newfound LNCO holdings. Nonetheless, my view is LINE and LNCO both traded comfortably in the $35 to $40 range throughout 2011 and 2012 and they are a much stronger company today with a bright future. Once the near-term selling plays out, there is no reason at the moment why these stocks won't take out those prior levels……..just as LRCX and ETN took out their previous trading ranges (even if it did take a few quarters and not a few days). We get to enjoy healthy, monthly distributions along the way though. GLTA and enjoy the added buying opportunity, if you are interested in owning more. I have been buying more, this time buying LNCO since they are disproportionately being hit.
Uh……it's 1.68 shares for 1 share. It has nothing whatsoever to do with the stock price. Whether LINE or LNCO were $5 or $50 per share today, the exchange would be the same. Perhaps there is some minimal tax advantage to get the deal done at a lower effective price, but otherwise, it is irrelevant what the stock prices were today. That said, I think think LINE and LNCO have 30% upside in the coming 12 months PLUS the distributions/dividends, but the near-term price action won't necessarily make us happy, but represents a buying opportunity for those interested. I own LINE, but have been buying LNCO the past couple of days.
This is not really news. Everyone should have known when the managements agreed to the new terms that this deal was done. ISS endorsement certainly eliminated any doubt. So, any stock move happened back then. Now, it's sell the news and all sorts of mechanics (that I don't understand), but that tend to put near-term pressure on the stocks involved with large stock transactions. It will all pass in the coming weeks and we will be off and running again. Enjoy your distribution in the meantime.
I have elected not to trade my LINE shares, as I am happy with the tax deferred status and the level of my monthly check. However, I have chosen to add LNCO to my holdings the past couple of days because I think they have been disproportionately beaten up relative to LINE, they are more tradable for me from a tax standpoint and some of my purchases are for a couple of Roth's where LINE is not an option. In my view, the trading around this deal is not unusual. It could trade down for a while. In time, it will recoup any declines and present us with a very healthy gains barring macro factors preventing it. And, we get the pleasure of the dividends/distributions along the way. For some, those interested in owning more, this is a buying opportunity. For everyone else, some patience may be required, but will likely be rewarded in 2014. GLTA
Generally, the outcome of the vote is known before the meeting since very few wait to vote in person. As such, they will simply read the outcomes of the votes on each of the items before adjourning the meeting. Press releases probably already written to put on the wire at that time.
Exchange rate is too high based on what metrics? The suggestion is that you know better than a management team with a great track record of accretive acquisitions as to whether this is a good deal for the companyunitholders, despite the fact that you are working with less information than they are. I would respectfully suggest that you think this one through a bit more.
Given the recent update on Q413 cash guidance and expected accretion from BRY, it would seem we are headed for an increase in the distribution to the original $3.08 intended all along. Even if they could do more, I would be surprised if they do. An increase with meaningfully better than 1.0X coverage would seem to serve us all better than a bigger increase and struggling every quarter to convince people it's sustainable.
Sign up for their electronic service. I received my proxy via e-mail immediately when they were out, checked the boxes and sent.
It's all what you have signed up for with your broker. You must be signed up for electronic proxies….whether you know it or not.
Technically, the deal is dilutive (ie. a share owned today represents less of the total than it will tomorrow). However, I think the argument you are making is that as with any merger, the questions that matter are 1) is it strategically important to the business and 2) is it financially important to the business. On these more fundamental questions, the answer is yes in both cases and the fact that it is immediately accretive to earnings leaves less to chance.
I have never been good at predicting where a stock will go short-term, but this one is likely to go up nicely over time and continue to deliver its healthy monthly distribution along the way.
I voted in favor. And, institutional investors will "ALL" support the deal. They follow ISS recommendations except when they differ with management. Then, it's possible some can be persuaded to go with management. But, of course, ISS and management are both recommending thumbs up on this one, so it's in the bag.
I have owned LINE a few months now, but just started buying LNCO yesterday at $30 and today at $29.15. I think it's an excellent buying opportunity, though it may take a few months to develop. But, getting the distribution monthly eases any pain of waiting for things to unfold. Barring macro issues entering the picture, I think this is a $40 stock by end-2014, if not sooner.
I have always wondered why LINE doesn't trade modestly higher than LNCO to reflect the deferred tax advantages. I can't really speak to the headaches of the K-1 since I have my taxes prepared by a tax attorney, but he obviously has no issue with it at all. It's all automated and he just plugs in the numbers……and sends me a bill. Not sure how trading in and out of LINE would change the complexity, if at all.
Bought 9,000 more LNCO at $29.15. The deal is not in question. Why the media even bothers printing the idea that the outcome is in doubt is an insult to everyone's intelligence. Now, that said, the stocks could still go down on the news, but the deal is not in doubt. GLTA
It would be shocking to me if the vote is in doubt. I've never seen shareholders not pass a merger proposal. As such, I don't think you are going to see a move of substance either way based on the vote, even when it's announced. If anything, we may see some selling the news. A nice move up will more likely start as we approach Q413 results and 2014 guidance being announced in January/February (whenever they report).
What are you paying to short? I just tried to get 25K shares to short at Schwab and they said it would cost me 4% today.