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Linn Co, LLC Message Board

inspectorbudget 3 posts  |  Last Activity: Aug 21, 2014 11:58 AM Member since: Dec 31, 1998
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  • Reply to

    Today's filing

    by mtsarasota Jul 10, 2014 12:19 PM
    inspectorbudget inspectorbudget Jul 10, 2014 8:05 PM Flag

    As I see it, this is what my interpretation is:

    CHS has folks who presently hold their equity Participation certificates - which are similar to bonds or secured debt - and CHS pays interest on it.

    CHS wants to retire those certificates. perhaps they pay a high % rate, or perhaps they are maturing - don't know.

    Instead of paying cash from their account, CHS is going to "exchange" the newly issued CHSCO shares for these certificates - hence the no cash proceeds. It is an exchange.

    This is essentially an exchange - perhaps the % rate of CHSCO is lower than the certificates, perhaps not. Don't know. But it has to be attractive enough for the holders to be willing to exchange their certificates for CHSCO.

    ---------------------------------------------------------------

    Main points - there is NO DILUTION - as would be the case with common shares. CHSCO is a Preferred, and the income stream is fixed.

    The exchange will add additional CHSCO shareholders who are existing customers, they are likely going to be strong holders and not hedge funds or flippers who sell at the first whiff of trouble.

    The exchange does not lower EPS or other numbers because CHSCO is NOT common stock and therefore is not measured by criteria such as EPS, P/E, PEG, etc.

    The guys who are selling now are obviously not strong holders and do not understand the nature of this exchange. They are selling first and asking questions later. Probably bought early on when CHSCO was in the $26-$27 range, and now locking in profits. Well, good for them; they will now be replaced by stronger holders who understand that this exchange is not necessarily bad for the company.

    If the PPS goes below $29, I will be adding to my already full position.

    Sentiment: Buy

  • Reply to

    MWE getting caught in the updraft!

    by fstoppp Aug 11, 2014 9:50 AM
    inspectorbudget inspectorbudget Aug 11, 2014 9:57 AM Flag

    Too much of a gap up to be explained by speculation. There must be some kind of news, but I can't find any.

    EPD is up as well, but by a more reasonable amount.

  • Reply to

    split time

    by loumarinodds Aug 14, 2014 11:43 AM
    inspectorbudget inspectorbudget Aug 21, 2014 11:58 AM Flag

    Does the price adjust today after close of market? The price should be around $39 when trading opens tomorrow, is this correct ?

    Sentiment: Hold

LNCO
30.040.00(0.00%)1:30 PMEDT

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