I did hold LINE and LNCO along with ARP, MEMP, and VNR but sold it all when everything started crashing. Gotta say, it caused me some tax headaches but also saved me a lot of money. Since then I reestablished a big position in MEMP and smaller positions in LRE and MCEP. I have a limit order set to buy EROC, but it has not hit yet.
Even though I no longer own LINE, I still keep an eye on it and the message boards, because there is good discussion going on about the sector in general.
I'd rather be invested in another MLP that has the cash and/or credit line to make accretive acquisitions *without* giving up a lot of the upside to a third party (MEMP, EROC). You could be right than Linn Energy will benefit greatly from these moves. Time will tell. I think Linn is doing the best they can given the circumstances and are trying to negotiate the best terms possible to claw their way out of this mess. The headwinds are very strong though.
I just wish one of these dives would take EROC back to $2 which is where I've had my freaking limit order standing since Jan 3rd! My patience is wearing thin, LOL.
Last time gold was at $1400/oz,, Yamana was trading over $10. Since then there have been some big write downs which affected book value, plus 5% dilution raising money around $4.40/share. Given all that, I think Yamana should be trading between $5.50 - $6.50 right now, unless there is more bad news Mr. Market is aware of that has not been made public yet.
I would be willing to bet a lot that BBEP will not see $30/unit in 3 years. Only way that would happen is if oil spikes to $200 (or more) and somehow BBEP is able to lock in future hedges for 3-4 years of production at say $160. Odds of that happening? About the same odds of me magically growing a third nipple.
It is okay to be optimistic and try to see positive signs for the future instead of negative ones. But still, it also is prudent to try to be a tad realistic in future projections.
I have a great suggestion for Doctors Without Borders. They can sign an agreement with Gilead to buy out the rights to sell Solvaldi/Harvoni and whatever improved treatment comes next with the patents for the sum of 200 billion. Then, they can turn around and offer the treatment for free to every deserving citizen of the world. It's a win/win for capitalism and compassion. So what do you say doctors without borders?
I have a feeling Quantum and Blackstone do see something. They see a wounded animal in the road and spot an opportunity to take advantage of the situation and make money for themselves.
I admit to being surprised that ARP is still sitting at $7.50. I'm almost tempted to buy back in, but I vowed not to get involved with another Cohen company again. ARP/ATLS is/was the final straw for me I think.
Just an FYI for those that hold shares with Merrill Lynch. My 1099 shows the income as ordinary and not qualified. I gave them a call to dispute it, and they came back with some vague answer that their vendor (whoever that is) told them Awilco does not meet the UK tax treaty blah blah blah. I personally decided not to pursue the issue further as I sold my shares, and the dividend amount was not enough to make me want to bang my head against the wall for hours trying to get it changed. I did tell them that they are one of the only brokers left still treating it as ordinary.
I think the true test will be summer inventory reports. If stockpiles keep rising even as refineries get fully ramped up in production, then I'm guessing oil will collapse again. Otherwise, I guess we have already seen the low.
yeah, it's funny. Full court press has been on Gilead from various media sources since December 2014. I would be very interested to know who is the puppet master in the shadows pulling all of these strings. Seems obvious to me that at least one party with a lot of pull has been greasing a lot of palms to get these stories printed at business insider, cnbc, bloomturd, etc.
It all comes down to two things IMO
1. Strength of $US
2. supply/demand. If inventories continue to rise even more through spring/summer, then I think oil has nowhere to go but down. The odds of that though is what is up for debate. Some very skilled analysts are predicting that inventories will peak by mid April and then start declining as refineries really step up their purchase of oil and ramp up production. If this happens, I see oil at least stabalizing at current levels and perhaps going up a bit more. At that point it comes down to world events like Yemen, Iran, etc. to maybe present a surprise.
I guess that's what makes a market. Any given stock has people who find it over valued and want to sell to people who think it is under valued and want to buy! I think NNA will eventually trade back to $4 at some point this year. Not buying at $3.55 though, since I already have so many shares.
That is due to the public's perception that JNJ is a blue chip company with a rock solid income stream that will go on and on for a long time. GILD's income stream is still looked on with suspicion as being one that could get cut in half at some point. I can see their point given JNJ is so diversified while GILD is a pure pharma play with patent expirations and more uncertainty. However, I still have way more money invested in GILD than I do JNJ.
Energy having a nice run also. My taxable account which is 2/3 energy energy plays is only down 0.1%. My retirement accounts which have no shorts or energy are down about 1.5%. Ouch.