Today’s a busy day for 30 Day Dividends positions. In addition to the earlier notice this morning regarding Clearbridge (click here for details) we’re opening a new position and closing an old one for quick gains. See below.
Trade Recommendation: Buy LinnCo LLC
Share values of Linn Energy and LinnCo LLC (Nasdaq:LNCO) have dropped on a combination of a pullback in crude oil, Linn going to the market to raise equity capital (16 million units), and a general market orneriness about Linn. Today’s drop in LNCO to around $11 is a good entry point with the short term goal of riding the share price back up into the low $12’s.
Remember that LNCO pays a monthly dividend and reports via 1099, which make this stock one I use to trade energy price swings without all the K-1 complications. The dividend is secure at least through the end of 2015. Also, the market has failed to notice a recovery happening in the price of natural gas over the last few weeks. Linn produces a lot of gas.
Recommendation: Buy LNCO at about $11 per share. Target price of $12.10 for a 10% gain.
Trade Recommendation: Close Position in NGL Energy Partners
I initiated a 30 Day Dividends position in the NGL Energy Partners LP (NYSE:NGL) on March 6, 2015 as a short term opportunity trade at the end of September 2014. The unit value has been bouncing around the target price for about a week, and today’s nice positive move is a good time to close the position and lock in the target 12% gain.
NGL has paid one distribution of $0.625 during the holding period, adding about 2% to the total return. As I write this the MLP is trading at about $29.70.
Recommendation: Close any open position in NGL today, May 19th. Try to get $29.50 per share or higher. I will use today’s closing price to calculate the return on the trade recommendation.