My sentiments exactly Perry. I thought yesterday was the bottom and I thought yesterday's closing price was a terrific bargain. At better than a 20% distribution yield we have to be close to the bottom. You have to do your research. But in the end dumb luck plays the biggest part. You can't time it.
I bought a small number of new shares this morning. I regret that now as I'm immediately down on them. Still I'm pretty confident that it will be profitable in the long run.
I bought a lot of oil stocks the last time oil and natural gas were low like this. When oil began to recover I was surprised by how quickly my shares in companies like LINE and EVEP rose. I went up a few hundred thousand dollars in just a few weeks. No kidding.
Totally irrational selling. At today's closing price the yield is now 13%.
I was just clicking through the other MLPs and it's the same story. For example the yield on ARP is now 20%. These prices are tempting. But are we done dropping? And is Iranian oil going to come flooding into the market?
The person who sold it to you got the distribution. The rule is that the person who owns the shares at the close of the market on the day before ex-dividend day gets the distribution. On the morning of ex-dividend day the shares open without the distribution. I hope that helps.
This looks like panic selling. The average daily sales volume is about 2-1/2 million shares. We've hit a sales volume of over six million shares already today in half a day's trading. Sometimes a steep drop on heavy volume with no news is a signal that a bottom is forming. After everyone who was considering selling has been scared out there is no one left to sell and the stock begins to recover.
NCZ just announced the July dividend. There is no change. It is 0.085 per share. The ex-dividend date is June 9th, the pay date in July 1st. (You must own your shares by the close of the market on June 8th to get the dividend on July 1st.)
(You can find a copy of the press release at the Alliance Global Investments web site under closed end funds, NCZ, press releases. You may have to play around a bit with the web sit find the press release.)
If you believe the long term price of oil will go up, they are both good buys at their current prices. At the moment they both pay a monthly distribution/dividend of $0.1042 ($1.25 per year). At the current price per share this is an annual return of 10.3% for LNCO and of 9.49% for LINE. Based just on annual distribution/dividend yield LNCO is the better buy.
LINE might be the better buy for some people because of the tax characteristics of a partnership. That depends on your individual situation.
In my opinion both LINE and LNCO are undervalued. I believe that if you buy and hold either one you will get a nice monthly dividend and a large capital gain in a few years. I've owned both. At the moment I own LNCO.