If you read the press release from Line you will see that there was no reason for them to cut their dividend now. They have a huge profit on their hedges and I think they want to use the money to buy back debt and maybe some stock. The fundamentals do not warrant a $4 price. If there is any recovery in oil prices during the next 3 years MEMP andLiNE at these prices will look like a real steal.
If you look at the market action of the stock earlier this week it is pretty clear that someone knew bad news was coming. It is hard to believe that with airline traffic so strong that they would have to write down their aircraft at this point. Not people I want to be involved with. Sold my stock this morning.
After hours trading tends to be extremely thin under normal conditions. considering what is happening to mlp stocks it is too crazy to participate.
I cannot see where a reverse split will do them any good. Most of the reverse splits are desperation moves. Lot of times the stock will revert to its original price. Big mistake.
Because this company was a spinoff there is no investment banking business available yet. Wait till they want to raise some money and they will come out of the woodwork.
Just got the annual report and proxy statement. In it they are looking for approval of a reverse split which is a bad sign.If it is approved it would not be good for stockholders imo.
I don't understand how a company that continues to show losses is considered to have beaten earnings estimates. Is this another Amazon that shows sales growth but never earns any money or can they eventually decide to cut spending and show a profit?
AS you probably noticed the dollar revenue from gas sales was way down but the profit margin was way up. This will eventually change when oil prices recover and refining margins drop. Then sales will be up and profits will be down. This is something owners of the stock will have to live with. But if they do a good job running the other aspects of their business they should be okay. Look at NTI which will tell you what refiners go through.
If the new regulations go through they have a 10 year transition period and who knows where we will be at that time. Nevertheless the market is trashing this stock as if it has already happened. Seems like an overreaction.