LNCO was an accounting ploy, never a real company doing business. LNCOQ simply means that it's a bankrupt accounting ploy. And why would you hold this delisted nothing? What if the IRS decides to challenge LinnCo as a legitimate C-corp in order to make CODI money? Unlikely but not impossible. Is a puny 7-cent bankrupt stock worth the risk? That's a kind of Russian roulette with no potential for reward. Unless cardiac arrest is one's idea of a fun time.
In case you haven't noticed, Linn Energy has declared bankruptcy. That means they can't pay the creditors. The effect is that the stock is worthless. If Linn energy exists two years hence as an entity, it'll be as a C-corp. with a new stock issue, none of which will go to current holders because creditors come first and there aren't enough assets to pay them in full. What's going on now is gambling on the greater-fool speculation.
You seem to have done no research at all, Jeremiah. You're breathtakingly uninformed.
Two reasons why prudent speculators should dump LNCOQ as soon as they can:
1. It's going to zero. Creditors will not be able to get fully paid. Therefore, in a bankruptcy, no assets of value can be ascribed to unit holders, not even the sale price of a headquarters desk.
2. There's a chance that Linn Energy's trade-in ploy of LINE for LNCO could be viewed by the IRS as nothing more than a tax dodge by switching like-for-like entities without the actual purpose of enhancing business. The possibility that the IRS could invalidate the switch, thus making holders responsible for a stunning amount of taxable CODI is too much of a blind-folded high-wire act to make the risk/reward ratio anything short of frightening.
Do you have any legitimate legal grounds, Melanie? Or do you choose to ignore that pesky due process in the U.S. Constitution? And where were you when the Q3 2014 CC forecast a horrendous Q4, which Linn duly produced? LINE and LNCO were in the 20s then and there was adequate time to bail. But if you bought in later, listening to the long Yahoo parade of evidence-challenged board optimists, you're to blame for not having done some simple research. Ellis warned and a few folks on this board (including me) brought it up numerous times, to the dismay of umpteen players who could not brook facts but excelled at name-calling, and none of them were named Trump. Well, it's hard to feel sorry for players who repelled valid information and became toast as a result. (And re Ellis: a bad manager who deviated from Mike Linn's business plan with a bunch of failed strategies. But there are bad, highly paid managers all over the country. At least Ellis rang an honest alarm bell which scared me into selling in 2014 for a big loss but avoiding a horror.
Everything in the market, ZB, is some degree a gamble. Think of all the important decisions in life that we make with hope, crossed fingers, and a prayer that they work out well.
H.P., you bought a CEF. As with ETFs, they all tend to drop some after the IPO. Moreover, they're not, say, CDs, and, over time, a brokerage can't control the net asset value any more than they can control the price of a stock, let alone a basket of stocks. Seems to me that you took a risk that you weren't aware of. The person you should sue is in your mirror.
Repurchases mean that the company concludes the premium discount on various funds is excessive and, ultimately, more profitable to shareholders if they repurchase. I'd place it in the mildly good news category.
People who think that Trump is imitating a bombastic ignoramus while covering up his real persona, which is a well-informed, articulate, intellectual.
Linn's stated asset value is an accounting fantasy. The actual MARKET value of dubious assets from a bankrupt company is probably a third of what is actually stated. That's one reason why Linn's bankruptcy filing fails to pay off unsecured creditors, who take precedence over unit holders. Unit holders will receive nothing because there'll be nothing to give them.
Elhertetic, my margin retail acct. was in the very low 7 figures when LINE was in the high 30's and TD Ameritrade wouldn't allow me or (so they claimed) anyone else to short. And I tried several times over a few years. I asked Schwab and Scott Trade (sp?) how I'd fare if I transferred to them. Same response. A friend with Oppenheimer asked them about shorting Linn via his margin acct. (much larger than mine). Same negative response. I don't know what IB is that Mjdux mentioned, but I'd guess that it's a tiny outfit that possibly lays off bets outside the U.S. If so, I'd be really cautious about that.
You might try reading the instructions and check the supplementary guide for Linn's K-1. Of course you have to be able to read.
Not strange at all. For many years now LINE could not be shorted by retail trade, even if you wanted to short against your own long holdings as a hedge. (Moreover, you can't short stocks selling under $5.) While many posters may claim they have shorted, when I challenged them (repeatedly) to name the brokerage that allowed the trade, I never once received a reply. On the internet liars grow like weeds on an untended field.
What's new, Ryan, is that there are people who simply don't pay attention and don't know that they are uninformed. . . . Wait! That's not new either.