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Updated: 09.01.13 Helping Investors Generate Monthly Dividend Income A. Dividend Lab 30-Day Free Trial: http://dividendlab.com/trial B. Products: http://dividendlab.com/products/ Hello, My name is Todd Johnson. Iā€™m a family man, sports fiend, health nut, technology buff, long-time stock investor... More
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  • Linn Energy (LINE): Buy Puts For Potential Berry Collapse 6 comments
    Jun 28, 2013 1:13 PM

    This is a calculated trade, if the inferences are accurate:

    DividendLab: I'm Buying (6) LINE $26 Oct Puts; 06.28.13

    SCHW is calling to borrow $LINE shares this morning.

    06.28.13

    Per SeekingAlpha news:

    (click to enlarge)

    The link takes us to this image:

    (click to enlarge)

    We can pick up LINE (if the above info & inferences are true) with the October $26-puts in place.

    (click to enlarge)

    Todd Johnson

    Editor, Dividend Lab

    Todd@dividendlab.com

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Comments (6)
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  • You're a little late on this post. The record date was cancelled and postponed due to the intial merger delay back in May. Anyone buying OCT 26 Puts will be left holding the bag bigtime.

     

    http://bit.ly/125dEPP;LINE;LNCOid1852541/BR...
    28 Jun 2013, 05:53 PM Reply Like
  • Author’s reply » SEC Inquiry: LINN Energy & LinnCo $LINE $BRY $LNCO 07.01.13 http://bit.ly/12ARA45

     

    Uh oh.
    1 Jul 2013, 11:36 PM Reply Like
  • Author’s reply » $27
    2 Jul 2013, 04:02 PM Reply Like
  • Todd - it was a good call but for the wrong reason. The BRY cancellation of the vote was not to cancel the proposed merger , but to delay the vote until the proxy became effective and the plan was to reschedule it. When that was clarified by BRY IR, LINE bounced back on the 28th and traded higher the next day (7/01). LINE didn't start to get hammered until the company disclosed the info on the "informal SEC inquiry" after the close on the 1st. Brokers had been calling to borrow LINE shares for weeks before the 28th , since the Barrons / Hedgeye stories / reports.

     

    If I had to call it here, i would have to say the BRY / LNCO merger will be cancelled based on the stock prices of the two and the proposed share exchange rate as I don't think LNCO would increase the offer of 1.25 LNCO for each BRY. It would have to be closer to 2.0 and i don't think that will happen.

     

    Is LINE ever going to be a buy? Everything has its price right? I would start to get involved in a small way in the mid-teens, right around estimated BV.
    7 Jul 2013, 04:13 PM Reply Like
  • Author’s reply » Workinhard, there is more to the story. I don't state every nuance of my buys or sells. Best, TJ
    7 Jul 2013, 08:40 PM Reply Like
  • Author’s reply » Another SELL LINE Recommendation: $LINE = sell, according to Personal Finance Flash Alert http://bit.ly/12dUuZB Great call. $BBEP $VNR
    8 Jul 2013, 06:55 PM Reply Like
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