Barron's is at it again - no surprise and nothing new.
The Princeton buddies Kevin Kaiser (Hedgeye) and Andrew Bary (Barron's) have it in for Line. We'll see after the SEC results come out. If they are wrong then they need to be investigated!
Barron's July 8, 2013
More Trouble at Linn Energy
Shares of Linn Energy (ticker: LINE) fell 29% last week, to $23.45, as Wall Street reacted to the company's disclosure that the Securities and Exchange Commission has launched an inquiry into the oil and natural-gas producer's accounting.
The focus on the SEC's inquiry, Linn said, was its use of non-GAAP financial measures and its hedging strategy, plus its proposed merger with Berry Petroleum (BRY). The SEC appears to be focused on the issues Barron's has highlighted in three critical articles beginning with "Drilling into the Numbers" (Feb. 18). It's unclear when the SEC will conclude its inquiry and what it may decide.
The inquiry and the sharp drop in shares of Linn units could imperil the Berry deal, which bulls have counted on to bolster Linn's energy production and financial results. Linn said it was committed to the transaction. Berry hasn't said anything publicly since the SEC inquiry was announced.
Kevin Kaiser, an analyst at Hedgeye Risk Management, wrote last week that the SEC inquiry puts the Berry merger "at serious risk." He has been bearish on Linn Energy.
Our view has been that Linn units are worth no more than book value, or about $17 a share, 28% below their current quote.
I wonder how many more companies Barrons writes hack attack articles (4 of them plus mid week comments from time to time) in addition to LINE. I wish someone would investigate them and put them out of business.
Good to see a fellow "bobcat" on this board. I am a real bobcat trader who made good money on buying and selling bobcats to the best customers in the USA, Europe and China. Today that business is more of a hobby. But I have taken my bobcat profits and invested them in MLP's and have done very well.
Now I have seen that the "risk vs reward" with investing in LINE at todays price is in favor of those who have the insight to see the FUD (fear, uncertainty, doubt) created by Barrons is worthwhile to patient investors. I have only begun to buy LINE. My own cost is only $24.40, only 3.2% of my stock portfolio, and only 1.5% of my net worth. So I can easily double down at $23.41 and will add to my LINE position this coming week at this price.
To Andrew Barry, I say thank you for helping to provide me with this opportunity.
informal would involve use of more words. These guys likely had a word limit and chose to leave that one out. Makes for a more dramatic story doesn't it without informal. Barrons loves sensationalism and has for decades. They should soon go out of business.
Since when did an oil and gas company traded at book value I don't know where LINE should trade and everyone has to make the decision on their own. However, I thought firms trade closer to some multiple of their PV 10 or whatever and no correlation to book value