Wednesday, September 23, 2009

Pay-to-Play (LGCY)

AlphaNinja - How does an I-bank get their hands on joint book-running fees for an equity offering? Simple! Promise to pump up the stock right after you get paid.

This morning, Wunderlich Securities increased their price target for of oil/natural gas partnership Legacy Reserves (LGCY), from $17 t0 $21 --no doubt also pushing it to institutional clients as a superb value. Not a thing has changed operationally, and in fact earnings estimates are coming down due to more shares outstanding. But Wunderlich likes the potential for a great acquisition thanks to this new money in the partnership's coffers, that they took a piece of:

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