Just remember that Casa's goal is ultimately to destroy the company and sell off the pieces. The theory is the parts are worth more than the whole. Strictly a very short term time horizon, just the time it takes to cannabalize the company. The mgt of CLF may be poor but the mgt of Casa is #$%$.
Looks like Linn is owned by some dividend mutual funds. With rising interest rates, I could see people pulling out of the mutual fund causing the fund to sell off shares. Makes it a buying opportunity.
This is a good old fashioned "bear raid", just like the old days before Linn went to monthly dividend. Looks like they got a good waterfall going. Get ready to jump in at the bottom because it bounces fast.
With the great lakes 91% frozen over, any chance the Soo locks will delay reopening ? Affecting the amount of iron ore shipped from Northshore, affecting the next two distributions.
Only 15 days of BRY revenue showed up in 4th qtr LINE results. What happened to the rest of BRY revenue for the quarter ? When BRY was closed up at date of sale, they would have had 75 days worth of revenue for the quarter that went somewhere. Where did it go ? Is it going to show up as an asset on LINE's books next quarter ?
From the earnings transcript:
"Now I’d like to turn to LINN’s operational results. During the fourth quarter 2013, LINN reported average daily production of approximately 889 million cubic feet equivalent per day. Fourth quarter production includes a 15 day contribution from Berry. "
It won't be until the 1st quarter of 2014 that we see the BRY effect. I wish Linn MGT had highlighted this fact more. Probably would have avoided the 5% drop yesterday in stock price.
They have posted the divi will remain flat for 2014. Their reaction to the stock price decline sounds like Marie Antoinette, "let them eat cake". Totally clueless.
The gross Revenue and earnings numbers only include 2 weeks of BRY data for the quarter. Next quarter the gross numbers will include all 12 weeks of BRY contibution to revenue and earnings.
Just one more thought, whoever is responsible for putting out LINE financial data is a hack. The financial reports are jumbled, disorganized, and appear to be done by an accountant that barely managed to pass his/her courses. Total amateur hour stuff.
Am I correct that, because BRY merger didn't finalize until well into December, the revenue from BRY does not appear in this current set of financial statements ? Therefore, actual BRY/LINE combined revenue going forward will be significantly more than what the last quarter stated ? Therefore, this is a great buying opportunity for investors, not day traders, investors.
Nat Gas prices were substantially higher in 2006-2008 and HGT production was higher. Those days are gone forever. HGT would be lucky to see $10
The downgrade was to "Sector Out Perform", not exactly bad news. Unfortunately, news feeds just record that it was downgraded.
Do your own due diligence. Read the financial statements of Linn. I've read three "quicky" articles on Linn's results and all three are wrong. You can't apply GAAP reporting to an Oil/Nat Gas MLP. The standard formulas being used don't work. I repeat, DO YOUR OWN DUE DILIGENCE !!
Linn had a onetime 751 million impairment charge (3.15/share) due to unrealized losses on hedges. Linn is a huge cash cow right now.
I've been through this already with Linn Energy, LINE. Its blatant stock manipulation by hedge funds using Barrons as their tool. All you can do is wait for KMP to hit bottom and than load up at the bottom and ride KMP back up. In a year it will be back where it was. Hedge funds will make money on the way down and on the way back up, its what they do.
You're correct on Income Statement but the Balance sheet will be as of end of year, that will be a consolidated LINE/BRY balance sheet. I'm also talking about operations, consolidation of staff, elimination of duplicate overhead, etc. If 2 banks merge, the layoff notices go out the next day. I'm wondering how aggressive LINE mgt will be in streamlining operations. Typically you should see @ 20% in overhead cuts.