There are also rumors of Maliki moving to Montana and then running for president. Gotta respect those rumors.
If you like the inexpensive calls, CC, why not the 2016 30s? For about $.80 more than the 32s you could be a buck in-the-money from the get-go and would need a PPS of only 32.30 to break even. So at 33.50 (which we're both confident about) instead of breaking even you'd be ahead $1.20. Of course the ticket for the ride is a bit more expensive.
My recollection is that Hegdeye was announcing when they bought and sold. I do believe that they were pretty active traders and invited subscribers to join their band wagon.
Panic selling , Erik, because others are doing it and possibly some large holder getting out for who-knows-what reason. I expect a rebound and bought some more of the Jan. 27 calls for 2016. Nice price at $4.00.
Should've been clearer. By "backed off" I meant issuing a statement that they are no longer negative about Linn. However, the turkeys did make a lot of bucks from their attack.
You don't seem to have done adequate research on your investment, Fmalad. Linn is heavily hedged for several years out, so the spot price of oil and NG are of minimal importance,unless large numbers of holders share your confusion about the facts. And I doubt that that's the case.
But why would it be reasonable for LNCO to trade at a 7% premium to LINE? Should Linn's PPS be 35, say, that'd mean the RJ analysts would have LinnCo's PPS at 37.50. Granted that a 1099 at tax time is WAY easier than a K-1, but is it worth that much above parity?
Still underpriced. Still unappreciated. And still just beginning to harvest interest from new investors and older ones who either bailed in the past or are looking to add.
While some players view LINE as in the public limelight, it isn#$%$ far from a name brand, even in the energy sector. And that redounds to the benefit of longs, as word about what I regard as a turnaround quarter steadily creeps out and about. I don't believe that the KMI action will have any impact on Linn, which is its own entity with its own future, and which (finally) looks like a bright one.
Furthermore, not that it matters much (although it couldn't hurt), Cramer, who said that he didn't know if Linn knew what it was doing, will be forced to pirhouette and declare that now, having come to its senses, it does.
So where's the PPS going? Well, I've been in the market for too many decades to pick a target price, but , absent some seriously bummed out news event, it IS going higher in 2014 and probably 2015. Also, as I posted at the end of last week, this week's action will be a strong indicator of the reaction to the Q2 report and, I'll now add, expectation of what's to come.
Seems to me, CC, that you've not only made a strong argument for buying either one (or both) of the twins but also for the 2016 calls (which I now own up to my nostrils). The leverage is very attractive and the premiums for in-the-money options way more narrow than I think they should be. I've been nibbling and nibbling at the Jan '16 27s like some food addict.
Sentiment: Strong Buy
Legalbark, until I switched to LNCO I had LINE in my IRA since early 2009, and several relatives held it in their IRAs. I hope your accountant is more savvy on other matters.
Sandra, you're seeking reasons for the inexplicable. It's the stock market. Stuff fluctuates because people buy and sell for hundreds of reasons. Therefore, the gap between the twins will fluctuate. Try not to sweat the pennies. You're too much of a worrier to be a good trader (and I'm too impulsive to be one), so you should forget about trading and simply buy now and sit on it. After all, Linn is looking good, as it's given strong indication of having gotten its act together. It will inevitably be appreciated for this. That's the way the market works. Word's going to gradually filter out, and over the coming year the twins' prices will rise. So stop trying to scalp small amounts here and there and go for the longer-term hold with phenomenal monthly income.
Sentiment: Strong Buy
The spread on LINE options may, at times, be nothing but a lure to make a buyer pay too much. For example, a few weeks back the spread was absurdly wide on the Jan. '16 27s. I bid just a dime over intrinsic value and, surprisingly, got my trade at several cents less. Somebody just wanted out. So for thinly traded options I wouldn't place much credence in the spread unless it was fairly narrow.
Do keep in mind,CC, that news can take a little time to disseminate, so that only really close watchers will jump in at the beginning. I wouldn't judge the reaction until, say, late next week when bloggers have had time to blog, analysts time to analyze, brokerages time to upgrade, investors time to invest (or reinvest), and shorters time to reconsider.
Meanwhile, I'd buy more of the Jan., 2016 options right now if I didn't already hold such a large amount.
I hadn't thought the chances of Linn surprising me with such a nice Q2 were very good, but surprised I am and happily so. Better times clearly are ahead.