Originally Posted By: JHZR2
Originally Posted By: Turk
With the new "deal"
what's your plans for the New Year?
Originally Posted By: Pablo
I've been a buyer of LINE (got hammered on the way down) and LNCO.
These said, what do you make of this:
Linn Co (LNCO) is essentially a shell company that owns units/shares of Linn Energy (LINE). Its main raison d'etre is to convert LINE's MLP distributions from ordinary income status to "dividend" status. If you want to receive ordinary dividends, you probably want to own LINE through LNCO. For those families making less than $450,000 per year, owning LNCO could mean a significant savings.
http://m.seekingalpha.com/article/1090501
My 12/31 addendum position in LINE I may take sell after a bit more run up and then take a nice fat profit. I bought it more on anticipation of an oversold rally than to sit pulling the divvy long term. Apparently this deal only goes so far so we will be discussing it again in a few months.
I'm just glad MLP's didn't get abused by the .gov. I've known they were oversold for awhile and as you pointed out, it's been looking cheap. I play both - but really within my SD IRA it makes no difference. I get the little packets from all my MLP's at the end of the year, but don't have to do anything with them - HOPE that doesn't CHANGE!