When the CFO receives a "margin call" at $9 and sells out of his own company's shares instead of using other sources/assets to meet the margin call, an investor should seriously consider also exiting his/her position.
barc, our govt. isn't "letting" these companies go bankrupt while Saudi Arabia benefits, it is a Partner of Saudi Arabia's in creating this situation.
And continues to receive compensation at the rate he did when LINN was healthy!
This subject must be addressed on the day unitholders receive the proposed elimination of their distribution, or management's credibility will suffer harm. The collapse so far has been catastrophic for many unitholders who depend upon LINE for income, and believed management's pronouncements that this was a "different kind of oil and gas company". The assumptions behind that statement have not been found to be true, and there should be both zero bonuses and also a pay cut from base salaries.
This company has few options due to prior failures to ensure hedges existed to protect against an oil price crash. Among the few chances to make an impact would be to eliminate the distribution entirely, use the proceeds to reduce their overwhelming debt, withstand the immediate selling to $6/unit, and look for $15/unit in 2 years. Other than that, they can ask the government to remove the prohibition on exporting crude.
According to news reports, the leaders of The G-7 Countries have announced their joint intention to phase out fossil fuels by the end of this century. Could this explain, at least in part, the recent downward price action?
According to news reports, the leaders of the G-7 countries have agreed to phase out fossil fuels by the end of the 21st Century. One can only wonder about the impact of such a statement upon LINN Energy.
They aren't currently earning the dividend they are paying, and have a history of diluting the equity of existing shareholders.