who cares the govt is shut down Nothing gets done in DC ought to keep it that way Congress and the administration has so much debt on us we are starting to look like Greece and Italy
you are assuming bry is worth 6 bucks more, and not artificially inflated by the line offer, or expectations of another offer which is doubtfull at these rates .t.ime will tell , meantime continue collecting the meager return of under 1 % and hope the deal fails and that bry can maintain its price.in the next year (s)
tho the overly divy, assuming sustainable in the long run, with enhanced recovery, which both linn and bry are using, should even increase, thusly in comparison with like entities ditto the stock price . lnco great for 401, line for the K-1 lads . You are 100% correct re the addl debt, however . would line be better off not diluting the stock and buying outright oil assets such as their recent buy? guess we will have to let the big boys holding the stock(s) to decide...
from another poster hits the nail right on
Linn Energy offered 1.25 shares which will carry a dividend of close to $4 per share per year. Why would they offer more. That is a hell of good dividend for each share of BRY. Furthermore as I mentioned a bank just loaned Linn Energy $500 million last week for 3.2% interest. That says a great deal about the strength of the Linn balance sheet. Why would they offer more to BRY shareholders when BRY and Linn have in house appraisals that show a share of Linn is worth $30-50 dollars.
Linn and BRY have 20 years of energy in the ground. BRY predominantly in oil and Linn in natural gas liquids and natural gas. The prices of this energy are only going to go up over the next 20 years. As a combined company this will be a monster. Separate from each other and they are just average producers that no one else would probably acquire in my opinion. Otherwise, with all the oil and gas acquisitions over the last few years they would have already been merged. IMO. Without the merger I think each company will fall about 10-20%. . partial from another poster hope that explains it to you
great post and answer .. all the rest are like seeking alpha most of them not thought out or clueless
assuming sec clears with little too doo, then bry adds, say 40c to distribution.. line shorts will take in in the gut and most likely linn returns to a minimum of 36 bucks just by the short squeeze and don't the institution holders know it!!! PLUS a fat return and divy
indications on failed fuel pumps after 30k or so miles also went thu that but car under warranty which included towing to ford dealer and loaner
who cares even if they up the ante to 1 1/2 shares , get bry, just think of the pop when the shorts are squeezed.. plus, even tho the divy may not be increased by addl dilution, coverage will be assured Besides I would dump the increase just to screw the shorts and Barrons