Stock Talk – October, 2013

Stock Talk

Lonzo Tomerlin

Lonzo Tomerlin

Why isn’t KMI on your list of stocks

Igor Greenwald

Igor Greenwald

I’m sorry, what list are you referring to?

Mark Hays

Mark Hays

Linn Energy seems to have some positives going for it now. I sold LINE after your recommendation. How do you feel about it now?

Igor Greenwald

Igor Greenwald

Linn’s share price remains entirely dependent on the outcome of the SEC probe and the pending merger with Berry. I’ve personally dabbled in the name on the way back up to these levels, but am staying clear here and have no plans to recommend this name for the portfolio.

Robert Rapier

Robert Rapier

I would add that I have never been too worried about the long-term impact of the SEC inquiry on Linn, but we don’t want to have subscribers in positions where that sort of risk is still present. I have stated on several occasions that I expect Linn to come out of this SEC probe without any sort of finding of wrongdoing, but in the interim until the matter is completely settled it’s an added risk that we don’t want subscribers to be exposed to. That’s our official position.

If you want my personal opinion, I think Linn will come out of this fine, but it’s going to be a roller coaster ride that many MLP investors aren’t going to appreciate. So it just depends on your risk tolerance, which for many MLP investors isn’t all that high.

Mark Hays

Mark Hays

What went into your reasoning to recommend selling Kinder Energy Partners LP (KMP)?

Igor Greenwald

Igor Greenwald

As explained at the time, we substituted KMI for KMP to own KMI’s incentive distribution rights stream and better growth profile from the same asset base

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