I have a private brokerage that hooks up with a public broker. Currently Schwab.
The spreads are horrible. When I first said to sell, he said 18 was the level but we could ask 25 and see what happens
How exactly? Sure they become ordinary shares but it's not like they haven't been getting the same distribution all along - so how does it change the ability to pay the current distribution?
I sold my $5M face of 8% that I bought at 10.625 at 18. Couldn't resist the one week profit and used the funds in my Nlnk put play that I hope to return 100% on in seven months. Still have the $1M face in 6% bonds that I bought at 10.125 though.
Have sold off half of my Mcep over the past few days to buy 250k Lgcy common. Not sure I want to own common but the relative valuation of the two demanded a move between them.
On the very last page of the Company's January presentation they have a combined capex and production range chart. It shows 2016 as having significantly less production than 2015Q4 annualized - but then shows 2017 as significantly more. I find each of these projections to be odd and wonder if the good professor utilized these levels in his projections?
My biggest concern for Lgcy was sub $2 gas. Seeing that they can hedge 2020 and beyond at over $3 is helpful.