LINN ANNOUNCES BUYBACK
The rolling crash continues this morning and after markets worldwide collapsed last night. And stock futures here are down but off the lows. Actually the dow futures overnight were down 300 points...as of this post down 170. All kinds of rumours out there on what might happen. President speaking at 10:30am.
Linn Energy (LINE) announces a 100 million dollar unit buyback so we're talking something on the order of 5-10 million units being purchased depending on price. It also is selling land in Woodford Shale for 229 million. The buyback can't hurt if someone out there case or if prices ever stop dropping.
It was good to see more MLPS coming out with distribution hike news early. It probably was key to limiting losses yesterday to just 8 points (4+%) as compared to the rest of the market and that disaster in big energy stocks. But there is still a rather lengthy list of mlps that have remained silent. Its time to speak up.
No other news so far this morning and no upgrades or downgrades. You have markets open but banks closed Monday for Columbus Day. You have a G-7 meeting this weekend. Not that any of that matters. Confidence is so shattered right now. We may need JP Morgan himself to come back from the grave and buy something because nothing has worked. Lets try the hereafter!
joseph cioffi's Source Page - Associated Content
13 comments:
I was watching the action on Thursday and there were periods of heavy volume where quotes had a significant lag ( this was very evident at the end of the day ). I'd bet that there will be reversals today when prices on SPY, DIA, QQQQ, major stocks and futures where current price will differ significantly from prices quoted on screens of many investors.
HS
I'm buying here.
The prices of the MLPs do not reflect the realtiy of the business. Yes the economy is going in the shitter, yes capital markets are closed, yes the world is collapsing, but I believe we'll recover at some point. When you can get paid 15% to sit and wait for recovery that is a good risk/reward in my book.
Mr. Majestyk
The governments of the entire planet are doing everything to stave off further disaster. The market is not going to turn on a dime and bounce back 4000 points. If you can take a view longer than 24 hours I think the MLPs provide enormous value...
It's a funny time we're in.
Who would have thought a year ago, that we would be able to buy GE at 19, and maybe depending on how bad this recession becomes... it's way too expensive at 19?
HS
I think the media has whipped everyone into a frenzy of fear. Things are bleak, but the world is not coming to an end.
"I think the media has whipped everyone into a frenzy of fear. Things are bleak, but the world is not coming to an end."
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The worst case senario is an extended lock-up of credit markets...
where even solvent ( in normal conditions )companies that depend on these markets to roll over their loans can't... and will default.
These defaults, unless the lender grants forbearance, will lead to
bankruptcies on an unprecedated scale.
That's why there are few buyers, especially with companies that have large amounts of debt.
Unused lines of credit that MLPs have with banks, are as good as the banks solvency and liquidity.
Then there are all sorts of counterparty risks. Many MLPS have futures contracts, interest rate swap contracts, and probably other counterparty risks that I'm not smart enough to understand.
Then all of a MLP's customers and suppliers face these same risks.
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Basically if the worst case sanario unfolds, stocks in general are a merely long term option calls imho, not an investment.
If somehow we recover from this credit freeze then stocks are "investments" again.
In any case, we're heading for at the minimum a stiff and extended recession.
HS
Chinese Wall?
JPM is up today.
It was reported that JPM's actions in seizing Lehman's assets was what forced Lehman's BK filing.
Rather than being at risk in Lehman's CDS auction, maybe JPM bet in a huge way that Lehman's bonds would default. Perhaps they are the big winner in today's auction.
That sound you hear is my cash scraping along the table as I push it into a fresh new round of MLP positions. I'm not going to allow the stupdity of this market ruin a good time.
Damn the torpeodos, full speed ahead...
Lee
UH OH!
nEWS RELEASE FROM TORTOISE SUGGESTS THE CLOSED-END FUNDS MAY BE FORCED TO LIQUIDATE BY COVENANTS OF THEIR LEVERAGE DEALS. IF SO, THIS WILL BE DISASTER FOR SURE.
IMHO, THEY WILL DELAY DISTRIBUTIONS AND DO WHAT THEY HAVE TO TO AVOID FIRE-SALES FROM THEIR PORTFOLIOS.
IF I AM RIGHT, THE 25% YIELD REACHED TODAY IS THE BARGAIN OF THE CENTURY.
SEE LINK
http://www.marketwatch.com/news/story/tortoise-energy-infrastructure-corp-provides/story.aspx?guid=%7B56049E63-3FBD-4C79-9B66-E9E7012F468B%7D&dist=hppr
DAVE
Today I bought 1000 CEP at 6.99, 1000 MWE at 14.91, and 1000 LINE at 11.00. Any other buyers out there?
steve
Look at all the posts here from folks who are buying! That's great!
Lee
I bought today: BPL, PAA, TPP, ETP, SXL and NS...
Mr. Pipes
"I think the media has whipped everyone into a frenzy of fear. Things are bleak, but the world is not coming to an end."
Are you sure about that?
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