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Linn Energy, LLC Message Board

  • diodia2000 diodia2000 Jul 3, 2013 1:49 PM Flag

    New hit piece from Barron's -- this makes number 3

    Barron's points out that Stifel has lowered its price target from $48 to $33. They quote Stifel as saying that if Linn NEVER makes another acquisition Stifel values the company at $22. If the BRY deal is completed, Stifel valueslue Linn at $35 - $40. Stifel says, "if the BRY/LNCO acquisition falls through but company maintains a conservative acquisition program through 2020, we estimate LINE units to be worth $32 to $35."

    Barrons goes on to say that most MLPs are pipelines & processing but that Linn has "allowed but less conventional assets" -- not specifying that these are oil & gas, but making them sound like something unfathomable and risky. They also say that there is risk to Linn's distributable cash flow but their explanation makes it clear that they do not mean Linn's cash flow would change, but they are assuming that the accounting for it might, and that would cause the same monies to be reported as lower.

    It is a very ugly piece of journalism, as bad as the Forbes. My takeaway is that Stifel thinks that Linn is worth at least $22 in a totally improbable scenario, and $32 even if the merger fails, which I do not think it will.

    Sentiment: Buy

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