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Breitburn Energy Partners L.P. Message Board

hungrydoggy 8 posts  |  Last Activity: Oct 18, 2014 7:20 AM Member since: May 23, 2008
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  • Reply to

    earnings

    by vinumalta Oct 17, 2014 12:43 PM
    hungrydoggy hungrydoggy Oct 18, 2014 7:20 AM Flag

    Most likely earnings will be out after the market closes on November 4th. Possibly very early in the morning before the market opens and before the conference call on November 5th.

    Sentiment: Strong Buy

  • Reply to

    LNCO VS LINE

    by gal1918 Oct 14, 2014 3:27 PM
    hungrydoggy hungrydoggy Oct 15, 2014 6:43 AM Flag

    Hi Gal1918. No, I don't think anyone can explain it. They should be trading at the same price.

    The price difference is currently $1.56. Last summer I sold my shares of LINE and bought LNCO. This increased my monthly dividend. If LNCO should one day go higher than LINE, I'm intending to trade back and increase my dividend again. I prefer LINE because of the tax advantages but I figured it both ways and at the moment LNCO is the better deal for me.

    Maybe the price difference between LINE and LNCO has something to do with the BRY merger? Perhaps the merger accidentally created too many shares of LNCO that the market hasn't fully absorbed yet? Or perhaps it has something to do with large funds preferring LINE for the tax advantage? I'm just speculating. I don't think anyone really knows.

    Sentiment: Strong Buy

  • Reply to

    Does LNCO hold units of LINE?

    by keltus1952 Oct 12, 2014 10:55 AM
    hungrydoggy hungrydoggy Oct 12, 2014 2:47 PM Flag

    Keltus, you got it right. LINE manages LNCO. Each share of LNCO is backed by exactly one share of LINE. The sole operation of LNCO is to pass through the LINE distributions.

    LINE is a master limited partnership (sort of). It pays a monthly distribution which is reported to the IRS through a form K-1. This results in tax advantages for the share holder. LNCO is a corporation that owns one share of LINE for each share of LNCO. LNCO pays the income tax on the LINE distributions it receives, and then re-distributes the LINE distribution as a LNCO dividend. LNCO reports the dividend to the IRS through a regular IRS form 1099 just the same as any other corporation and you as the share holder in turn report the LNCO dividend on your income tax on an IRS schedule B just the same as you would report the dividend from any other corporation.

    It is possible that at times the LNCO dividend may be slightly lower than the LINE distribution because LNCO has to pay corporate income tax on the LINE distribution before they pass it on to you. So far the LNCO dividend has been the same as the LINE distribution. For this reason, in theory LINE and LNCO ought to be trading at either identical prices or LNCO ought to trade a few cents per share less than LINE. The current price differential is irrational.

    Just my opinion but I think that both LINE and LNCO are outstanding long term buys for income investors.

  • Reply to

    This is the same thing as Enron !

    by donkergen Oct 9, 2014 10:51 PM
    hungrydoggy hungrydoggy Oct 10, 2014 6:47 AM Flag

    That's ridiculous. LINE and LNCO have actual real assets, oil and gas wells that produce a real product. And LINE and LNCO pay real money out every month to their share holders. And if you've ever bothered to read their quarterly reports you would have noticed that they are making enough money to cover their dividends and then some.

  • Reply to

    52-wk Low

    by play_tow Oct 8, 2014 12:34 PM
    hungrydoggy hungrydoggy Oct 8, 2014 1:41 PM Flag

    Down over 6% this morning. We can't go down too much further because the further down the share price goes the higher the yield becomes and the higher yield sets a brake on further declines.

    If Yahoo's numbers are correct the sales volume for this morning is almost three times the normal full day's volume. That could mean five to six times normal sales volume by the end of today. Usually a sharp drop on heavy sales volume signals capitulation. After these extraordinary losses we might be near the bottom as the last share holders to panic sell out, take their losses and leave.

  • Reply to

    Dow rises well,ncz looses .17 one days trading

    by par7551 Sep 26, 2014 9:42 PM
    hungrydoggy hungrydoggy Sep 27, 2014 12:49 PM Flag

    Its always a concern when net asset values drop. But it seems to be a market issue. As you probably know bonds and preferred stocks in general are going through a rough time right now. Investors are concerned that interest rates will be rising which would reduce the value of existing fixed rate bonds and preferred stocks.

    I personally am holding because I intend to keep NCZ for many years and because I need the dividends.

  • Reply to

    Dow rises well,ncz looses .17 one days trading

    by par7551 Sep 26, 2014 9:42 PM
    hungrydoggy hungrydoggy Sep 27, 2014 8:27 AM Flag

    In a surprise press release Bill Gross announced that he was leaving Pimco. That caused panic selling of all the Pimco and Alliance Global funds. Some of the Pimco and Alliance Global funds dropped a larger percentage than NCZ. That's why we lost seventeen cents.

    If it makes you feel better you probably have nothing to worry about. What happened was an unexpected event. It is most likely a short term over-reaction. Nothing has changed in NCZ's portfolio of investments or their net asset value, the dividend is unchanged, and so far as I know the fund manager is the same. In a perfect market NCZ probably wouldn't have dropped at all. But investors got irrationally scared. Eventually the price per share will recover.

    This is probably a good buying opportunity for anyone who was thinking of getting in.

  • Reply to

    Help please

    by the_pinner2000 Jul 30, 2014 4:17 PM
    hungrydoggy hungrydoggy Jul 31, 2014 9:03 AM Flag

    LINE is a limited partnership. LNCO is a corporation. As I understand it, the two are separate legal entities.

    LNCO is managed by LINE. LNCO has only one operation. That one operation is that it owns LINE partnership shares. Each share of LNCO is backed by exactly one share of LINE. When the time comes to pay the distribution, LINE pays a distribution to LNCO for each share of LINE that LNCO owns. LNCO then pays the income tax, if any, on the distribution, and then re-distributed the distribution as a corporate dividend to their share holders.

    Figuring income taxes with a limited partnership like LINE is a real pain. LINE sends you a form K-1. For me it takes me at least half an hour for each limited partnership I own and it is difficult and confusing. For that reason many investors hesitate to buy a master limited partnership. But if you buy LNCO your dividends are reported to the IRS just as normal corporate dividends, you get a regular form 1099 just like any other corporate dividend, and you report your dividend like any other corporate dividend on Schedule B.

    Because LNCO pays income tax on the LINE distribution before they pass the money on to you as a dividend, it is possible your dividend could be lower than the LINE distribution. But right now they are the same. In a perfect market LINE and LNCO would trade within a few pennies of each other.

    I hope this answers your question.

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