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Linn Energy, LLC Message Board

  • bobcat_jack66 bobcat_jack66 Jul 6, 2013 12:58 PM Flag

    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.

    - Andrew Bary

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2.19Nov 24 4:00 PMEST