Legacy Reserves LP = No Deal

Yesterday, Legacy Reserves LP (Ticker: LGCY) rejected the going private proposal from Apollo Management. Apollo Management made the proposal in April for $14 per share adjusted for distribution pay outs. I picked up a few shares in April for $13.10 per share. I received one pay out of $0.52 per share, which equates to a cost basis of $12.58. The stock gapped down on the news, but closed strong. Today, the stock continued to rally to close at $13.00 per share. Apollo Management was clearly trying to get this on the cheap, when the price of oil was depressed. Now that the oil has rebounded, the company put in some nice hedges. The payout of $0.52 per share / quarter will continue...Not a bad yield. Now you can see why the shares are rallying. I'm going to hang on to this one for now.

Investment Canada is really taking their time to give the ok for IPIC to purchase Nova Chemicals (Ticker: NCX)... What's up with that!? Anyways, we should hear any day now.