Look at the huge down volume on this stock. If anybody seriously believed they'd keep that dividend there would have been large up volume instead. Insiders leaked the news right before the last dilution and also right before the dividend cut. If LINN's management is consistent, we'll soon see another dividend cut, the news of which was probably leaked again to their buddies.
marco the super genius : - ))) I know what these guys are going to do before they even think about it. I love playing financial CHESS with these idiots, I'm looking many ply deeper than Dr. Linn. 1 P-Q4 1 ....
Things will happen quickly now. LNCO's headed under $5.00 and not long after that The Pink Sheets after they cut the dividend again. That's when they'll do a 10:1 reverse split, which will wipe out most of the remaining equity in suckers still holding the BAG. The reverse split is another trick management has to further reduce the share price. Before it's over, LNCO will be trading under a dollar from a pre-reverse split basis. That's when they'll LBO this worthless POS.
marco the super genius : - ))) If you're still holding LNCO shares, you probably lost so much now you think it's too late; however, wouldn't you be happier knowing LINN didn't get it all, huh? I mean like, you know, keep something for yourself that LNCO didn't manage to grab, huh? So, what can ya do with $5.00, huh?
1) Yinz can buy 2 Burger King special sandwiches for $5.00
2) Y'all can purchase a 10-piece chicken nugget, fries and drink at Burger King
3) You can buy two cans of wasp & hornet spray on special at WalMart
4) Park your car for 1 hour in Chicago
Now, if Yinz have 100 shares, you can do the above 100 times, all on LNCO's nickel.
Dump before we DIVE under FIVE.
Straddles won't work here, options are too high because of [V] volitality. It's too late to short now. There's restrictions on shorting stocks under $5.00, so, if you're gonna short, ya better getter done before $5.00.
marco the super genius : - ))) You're seeing the massive institutional dumping now that it looks like we're headed under $5.00. Watch all the pumpers come outta the woodwork as desperate funds try to pump this worthless POS up before they dump what they got stuck with. Management will be setting up their LBO very soon and will do things to drive it under $2.00 if they can.
btw, do Yinz think I deserve another smiley rank on my genius icon, huh? I mean like, you know, I sure have been pretty super of late.
BERNSTEIN: INTC fair value = $25.00
wimpy_wallacw: INTC fair value = $60.00
Current price: $28
marco the super genius : - ))))) We'll I guess we know who our Daddy is, huh?
I'm offering wimpy_weaver $10,000 to quit posting under the wallisweaver handle. He can chose whatever handle he like after; however, the password must be supplied to marco to receive the grauity. Deadline is August 15, 2015.
marco the super genius : - ))))) My attorney has a check in an escrow account which will be delivered to wimpy upon the rendering of a password which accesses wallisweaver's account on Yahoo.
This animal must be broke with all the losses he suffered on INTC and probably needs the cash. This is a lot more than INTC is paying em.
Oh yer a math Geek, just what I'm looking four. Tell me mister brainy Dude how do y'all calculate composite volatility, huh? I'm having trouble with my GARCH two, gimme sum pointers, okay?
marco the super genius : - ))) I may knot no a lotta math and stuff, but, I did stay in a Hoiliday Inn Express last night. and I dew no where too get sum good Weed, cheap.
hey davis, you idiot, when I want your opinion I'll beat it outta ya.
marco the super genius : - ))) Don't say it came from me-I told Walley I wouldn't tell nobody-but, Walley heard from two Burger King customers that Linn has already been approached, AND THEY DIDN'T SAY NO. The debt doesn't matter as much as the liquidity ,you fool. You can be insolvent, but still liquid, and there's always room to play. BTW, LINN ain't even insolvent, YET.
Bernstein, yer a genius ((((( - : Is there another INTC analyst in the same class, huh? Ans: I don't know, but, it sure don't take long to take the roll.
marco the super genius : - ))))) Okay, I'll take it - $25.00 - by cutting off 25 cents a day, but, it wood bee a lot nice for a $3.00 plunge, and get the job done early.
btw: wimpy_weaver, whose yer daddy, huh? It ain't yer mommy's husband.
Thems of Yinz that didn't gimme a hard tyme are welcome to come over for a beer and angus beef hamburger at Karen's daddy's place tomorrow. It's a surprise birthday party. I'm bringing em a bottle of his favorite scotch, which I lifted from his supply last February tee hehehe
Yinz know the closer it get to $5.00 the quicker the panic sellers load up the ask.
marco the super genius : - ))) Once it plunges under $5.00, any hope of a recover is long gone. I warned Yaz, pretty soon it'll bee two late, not long to wait when they lock the gate, and yer indecision you'll come to hate. Sooner or later it all comes down to fate, and marco maintains his status as GREAT! Wait, there's more .....
Bernstein said INTC fair value = $25.00. Anything higher is OVERPRICED.
marco the super genius : - ))))) Do your part in lowering INTC's price to $25.00 so thems that wanna buy this POS won't be overcharged, we'll call it marco's Law.
They're gonna run outta red ink soon.
marco the super genius : - ))))) I'll sea if I can find sum red ochre when we run out, okay? INTC has a long weigh to drop and we're running outta red.
"...Why would one short stock against calls rather than buying puts against calls (which somehow seems easier to me)?..."
Straddle, buying puts and calls instead of the above works better for stocks like LNCO because with the put you don't have to pay the dividend. However, with the short, the cash pays for the calls so you don't need as much money and can lever up if y'all want.
marco the super genius : - ))))) Most Bears use puts on LNCO because of that stupid dividend.
Bernstein said this lead balloon ain't worth more than $25.00, so, what's it doing in the $28s, huh?
marco the super genius : - ))))) Don't cha just hate things that are over priced, huh? I mean like how'd ya like to order a Burger King whooper and stuff and they want like, you know, $15.00 for it or something. Drinks all around if we close under $28.00 on Friday.
OHE4U, I hope ya didn't bet more than you can afford to lose on this stock, but, I know a number of people who put a significant portion of their retirement savings in LNCO for the dividend. There is one, and only one, stock you should ever do that with. It's called SPY. In the future, make sure that at least 80% of your stock portfolio is in SPY. If y'all wanna speculate with the other 20%, go ahead, 98% of the time you'll be wrong, but, you will still have a nice profit over time.
marco the super genius : - ))) Learn from this and move on. One thing I noticed: the more you get burned, the smarter you get.
Stocks trading at a significant discount to book with good prospects for future earnings. Someting y'all folks should consider, the more this stock discounts from its book value, (P/B = 62% for LNCO) the more likely an insider LBO, for obvious reasons, GREED. Management seriously thinking about an LBO will often do things than make little sense to shareholders, like diluting the float after the stock has fallen significantly, and doing things to reduce its credit rating. These actions force institutional holders to rush n dump, while friendly institutions park copious amounts of the company's stock to for the future LBO vote. They hide this activity by parking less than 5% of the float in many smaller institutions who will later overwhelm your shares when they vote to sell the company for pennies on the dollar.
marco the genius : - ))) Yinz can't fight em, all y'all folks can do is get out before they take additional actions to scare shareholders out of their diminishing holdings. Look for more strange actions which make no CENTS for a company in desperation mode. I hate to see Yinz get burned like this, but, it's simply business, and that's the way the game's played. Your only rational defense: GET OUT EARLY.
Every time somebody does that, massive selling floods onto the ask after a short spike.
If yer greedy enough to sucker for that, try this instead: A combination purchase (Short 100 shares, long 2 calls with different strikes. That way you have limited risk, but, y'all make money on any spike up or down. Yinz know it's not staying here.
marco the super genius : - ))) They call that covering fire for their buddies desperate t get out. Watch & Learn my children.
Who among yaz is buying this worthless POS, huh?
marco the super genius : - ))))) Stop that, immediately if not sooner. Just get me to a $27.00 handle and I'll be a real nice guy.