PRE-ANNOUNCES DISTRIBUTION BOOST.
There has been some speculation on the yahoo Linn Energy Bulletin Board that a deal was forthcoming but this one announced this morning is pretty big. 2 billion purchase with a priviate placement of securities (no immediate dilution) and the company says the distribution will go to 2.52 minimum in q4. So Linn Energy (LINE) is priced right now to yield 7.6%. At 40 bucks its priced to yield 6.30% which is what the stock yields right now based on Friday's close and a 2.08 distribution. This one should be up at least several points today. Nothing yet has appeared in the premarket.
Also this breaking bulletin on Oneok LP (OKS) as it buys assets from Kinder Morgan(KMP) in a 3o0 million dollar deal. Should move both stocks today.
The new quarter begins this morning and stock futures are stronger. Energy is flat and bond rates are okay; the 10 year is at 5.03%. Nothing has appeared yet in upgrades and downgrades. The MLP index starts the day at 331.76 and sits about 1 percent under a new all time high. Look for upside to start on the bullish backdrop!
joseph cioffi's Source Page - Associated Content
2 comments:
LINN is going to rocket. I bought LINN after you mentioned it at $25 -- thank you!
Also, this release confirmed the Q2 dist. to $2.28, which previously had been mentioned as "going to be recommended".
$2.53 "with significant additional cash flow" means there is room to bump after that.
Yippee. I'm betting we're closer to $50 on this one come end of the year.
up nearly 5 bucks today!!!
Post a Comment