Nice comeback in the last 30 minutes. MLPS closed above 310 and down less than 1 point..the dow closed higher and 13500 held.
Linn Energy (LINE) continues to bleed as the stock at 28 now yields a whopping 9% going foward or 4.61 points above the 10 year. So either this is the biggest buying opportunity of the year as the stock is grossly undervalued or the market is telling us that the 2.52 pre announced distribution ain't going to happen. Or perhaps Linn is getting hit as oil continues to reach for 100 bucks. Maybe some people think they didn't hedge correctly. Or maybe all the new shares are getting sold. Truly i have no clue.
Also BBEP down hard today on completion of the quicksilver purchase. Maybe the same problem here. EVEP finally sold off today as it catches up to other MLPS. This one was up on the week and above 38 before today's profit taking.
Have a good weekend.
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- joewxman
- a meteorologist with a knack for trading and investing in MLPS! I also like horse racing, enjoy cigars and a good port wine.
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2 comments:
Regarding LINE, the company converted over 34 MILLION restricted insider shares to regular units. This has not only caused a huge dilution but will put the units under massive selling pressure at least through year-end as the insiders monetize their investment in the company.
Here is the press release:Linn Energy Announces Conversion of Class D Units
Thursday November 1, 6:23 pm ET
HOUSTON, Nov. 1, 2007 (PRIME NEWSWIRE) -- Linn Energy, LLC (NasdaqGS:LINE - News) announced today that at a Special Meeting of Unitholders, its unitholders approved the one-for-one conversion of each of its 34,997,005 outstanding Class D units into units. As a result of the conversion, Linn Energy currently has approximately 113.6 million units outstanding.
Bruce
Bruce - Isn't this dilution accounted for in their projected $0.63 per-unit distribution in November? If so, then I can understand a demand/supply concern, but the distribution continues to support current (and higher) prices. Your thoughts?
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