Today (obviously before the earnings announcement which is imminent) I increased my investment in LINN Energy by increasing the number of shares held by 67%. This makes LINN 70% of my investment portfolio. The remainder is in municipal bonds which have a significant unrealized capital gain since purchase and yield 8% because they're in a leveraged PIMCO account.
Regardless of tomorrow's data points, I believe the magnitude of the price spike in oil, coupled with the lack of an "Emergency Meeting" by OPEC (the silence is deafening!)indicates that OPEC's vaunted surge capacity is significantly overstated. I still have a copy of "Twilight In The Desert" in my library and believe we're seeing the first indications of the book's thesis coming true. Even the Saudi's will tell you, if pressed, that their "spare capacity" is sour crude and will take time to bring on line.
I don't expect the world's news media to connect the dots either. But, why else would the Saudi King Abdullah suddenly return from "medical treatment" and tell his countrymen his plans to vastly increase social spending to keep the lid on there? Methinks its a sign of weakness, not strength and this is one of the underpinnings of my plans to increase investments in Linn annually unless the American government does something truly stupid, such as increase the gasoline tax by $1.00 a gallon as is being openly discussed on CNBC today.
Good luck.....and good fortune on tomorrow's conference call as well.