Stock Deal: Linn Energy (LNGG)

[highroller4321]

Also, I would refrain from selling at an artificially low price early Monday morning. Look at what this stock did on Tuesday when it bottomed out at $38.05 in the first half hour or so of the day and then closed at $41.50. Panic never gets us anywhere and it might cause us to soil our pants! Volume should be over 100k on Monday.

Keep in mind- it is not like the stock market or oil and gas are acting poorly. That gives me more confidence in holding out for some kind of profit.

I was looking at the stock a little deeper last night and it looks like its actually an "ok" stock. I know the company went bankrupt but based on their recent steps they seem to be on a much better path.

My plan is to hold onto the shares until I either make a profit, or find something else I want to invest in.


Just FYI I not upset that this deal didn't go smoothly. The initial report were showing much different numbers then what happened. They were talking about an available supply of like 30M and then there was over 70M shares tendered.

[Recyclersteve]

Thanks Adam. You've got the right attitude.

[Recyclersteve]

I bought 150 shares at $42.80. They took 13 shares so now I have 137. If I sold them all on Monday for $41.00, I would only lose about $250 total on the deal, which is not bad considering I made almost $1,000 on the CBS/ETM deal. I placed a limit order to sell at $42.70, which would yield a small profit. I'll probably hold on to the 137 shares until I can break even or better.

That is pretty much in line with what I would do under the circumstances, unless I had additional buying power and wanted to buy more shares at the lower price. You have some things going for you right now:

1) Markets normally do well from November thru April (the Stock Trader's Almanac covers this in great detail);
2) Their is very little fear in this market; and
3) Oil and gas (and even commodities) are doing well now.

[Recyclersteve]

I was looking back at what I said with the initial posting in this thread and here was a quote:

"you could make a profit on 1/3 of your shares and lose on the other 2/3. Just wanted to get that out of the way- there is absolutely no guarantee of a profit and this isn't as safe as the CBS/Entercom deal was." (I sure am glad now that the quote was in there)

I ended up netting 4.2% profit and sold all shares that were returned to me in the first half hour or so today. I got out of some of the shares at the open ($41.00). If I wasn't out yet, I'd likely either buy more shares to lower my average cost or just hold on for perhaps 2-3 months if necessary. Good luck on finishing this deal in a positive manner. I know it is much more challenging than the CBS deal was.