Quick Win by the Algorithm: Legacy Reserves LP (NASDAQ: LGCY) Returns up to 29.53% in 1 month

Legacy Reserves LP acquires and develops oil and natural gas properties primarily in the Permian Basin, East Texas, Rocky Mountain, and Mid-Continent regions of the United States. As of December 31, 2017, the company owned interests in producing oil and natural gas properties in 606 fields comprising 10,492 gross productive wells, including 3,497 operated and 6,995 non-operated wells located in the Permian Basin, East Texas, Piceance Basin of Colorado, Texas Panhandle, Wyoming, North Dakota, Montana, Oklahoma, and other states. It had proved reserves of approximately 180.0 million barrels of crude oil equivalent. Legacy Reserves LP was founded in 2005 and is headquartered in Midland, Texas.

[Image Source: Legacy Official Website]

Over the 1 month after I Know First issued its forecast on March 25, 2018, Legacy Reserves’s stock price jumped from $4.51 to $5.81 per share, outperforming the market by about 18%. What happened that drove the growth? The reason lies in the company’s Corporate Transition.

Legacy Reserves announcement that it would transition from an MLP to a C-Corp led the company to more than 11% rise on March 26, 2018. To enable the move, investors will receive one share of New Legacy’s common stock for each unit currently owned. In addition to that, the company will also convert its outstanding preferred shares into common stock. These moves will reduce complexity and enable the company to move forward with a simplified corporate structure. “As a result of the Transaction, Legacy will become a newly-traded C-Corp stock with a less complicated balance sheet and an enhanced opportunity to raise capital and grow the business”, Said Mr. Paul T. Horne, Chairman and Chief Executive Officer of Legacy’s general partner, commented.

I Believe that the Corporate Transition is the main reason for the company’s growth during the 1-month time period.

[Image Source: Yahoo Finance]

From the above data one can see that Legacy Reserves LP increased its share value by transitioning from an MLP to a C-Corp. In addition, the company has since April 12 a big market gap which gives it the market gain for these days.

On March 25, 2018 I Know First issued a bullish 1 month forecast for Legacy Reserves LP (NASDAQ: LGCY). The forecast illustrated a signal of 176.30 and a predictability of 0.45. In accordance with the forecast, LGCY’s stock returned 29.53% over this period, highlighting the accuracy of the prediction produced by the I Know First algorithm.

Current I Know First subscribers received this bullish LGCY forecast on March 25, 2018

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Disclaimer

Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.