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Linn Energy, LLC Message Board

  • margretbar2 margretbar2 Nov 4, 2013 3:28 PM Flag

    Cramer buying more LINE

    Sent: 11/4/2013 3:20:19 P.M. Eastern Standard Time
    Subj: Action Alerts TRADE -- LINE

    Monday, November 04, 2013 3:19 p.m. EST

    -- Buying 300 shares of Linn Energy at $31.44.

    We'll add another 300 shares of Linn Energy (LINE:Nasdaq) at
    $31.44 ahead of tomorrow's conference call, which we believe
    will be upbeat and outline the future growth catalysts for
    the company over the next several quarters.

    The company will specifically review the new terms of the
    Berry Petroleum (BRY:NYSE) deal, which was increased in
    price earlier this morning to $4.9 billion in price (please
    see our earlier alert). The company will issue more shares
    as a result of this all-stock transaction, but this was
    largely expected and will still be accretive to LINE by as
    much as 20 cents per unit. The reason is because both BRY
    and LINE have posted better operational results since the
    initial nine months it took for the deal to gain approval.
    Plus, the new arrangement lowers LINE's debt exposure and
    the geographic expansion will lead to higher-than-expected
    synergies than initially expected. After nine months of
    negotiations and regulatory hurdles over BRY, the end looks
    in sight and the real synergies can begin.

    We continue to see NAV at $40, so there is ample upside from
    the current level. We will trim Ford (F:NYSE) and Union
    Pacific (UNP:NYSE) when our restrictions are cleared to help
    fund this purchase.

    After our trade we'll own 2,300 shares of LINE, or 2.3%.


    Jim Cramer, Stephanie Link, and TheStreet Research Team

    Sentiment: Strong Buy

2.02-0.11(-5.16%)Nov 27 1:00 PMEST