the dist increase was part of the qre deal if they don't increase the dist to 2.08 for at least one payment they would have every lawyer beating down the doors, that said qre's dist coverage was much better so when combines with bbep it may get it closer to 1:1
I don't think qre will be gone tomorrow, first of #$%$ll they need #$%$ yes vote not gu#$%$r#$%$nteed, then BBEP will t#$%$ke there sweet #$%$ time to convert our sh#$%$res so th#$%$t they will not h#$%$ve to p#$%$y the "promised" incre#$%$sed distribution until next ye#$%$r, BBEP p#$%$y monthly #$%$s well. #$%$lthough stock is only priced #$%$t #$%$ .03 discount to bbep #$%$s right now.
in reading the legal mumbo jumbo that seems to be "baffle them with bullshit". I can not see the exact excange rate stated, nor can I see any new dist amount as "promised". this may disappear like LINE's Promised rate.
at this point I am going to vote NO, hoping for a sweetening of the pot or at least clarification of the deal expressed in "laymans english"
In reading the legal mumbo jumbo I can not see where we are exchanging our units for bretburns units nor any mention of the "promised" distribution rate of 2.08 per year. I am considering not voting (same as a no vote) one document was 500 pages long and I could not get the exact exchange rate out of it. the promised rate hike may go away like line/lnco's promised rate went.
you may soon get to buy memp units at a discount they just scheduled a 250 million secondary and that is a good time to buy
perhaps there is some margin calls out that are forcing some of the panic selling. with the heges in place line/lnco should do ok with 85.00 oil for a couple of months.
I think the price weakness is due to the high yield funds that cefl tracks they have dropping from fear of higher interest rates and maybe a weaker economy ... that said I'm holding on for a longer outlook.
This pos will be bankrupt in one year, they have a flawed business plan. and users like me are dropping like flies so if they don't change many things they will have alienated all users and hence revenue and any possibility of profits gone by the wayside.
exercised the sept calls, this is bad news since as soon I buy the stock tanks,
interestedly the open interest barley went down from Tues to wed I would think that more holders would exercise to capture the distribution. the pps will drop after the ex date but the probability of it going below 20 is small IMHO
attempted to close out my sept calls and wanted .05-.10 premium, left the order set until bid ask was 21.40-21.42 ( my order was to sell @ 1.40 ) when I saw the bid ask up there I canceled the sell order.I may reenter the order higher or wait till monday and exercise early to get the dist.
most of the calls on qre are not really priced right as calls but are "insurance" on the deal falling thru, I own some sept 20 calls and may exercise early to get the distibution the bid is below parity and I was expecting to exercise any way.
given line's need for cash I doubt that line is buying any units at these prices I they would drop significantly then maybe but right now I can't see them burning their cash at these levels
I am betting on the deal going thru, today sold qre nov 20 puts for .75 more than the dist for 3 months and less capital outlay. (but won't gain more than .75) however I own plenty of qre for that.
perhaps some was trading the options on lnco based on the planed asset auction now that is announced. I have decided to go along with the big option player. today I sold 20 lnco 30 sept puts worst case I get 2000 more shares of lnco with almost 10% yield and can sell some longer calls to almost double the dist yield, other wise pocket the .50