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Linn Energy, LLC Message Board

  • gpd8252 gpd8252 Aug 13, 2013 10:55 AM Flag

    From SEC website

    Linn is guilty of none of these infractions, don't see how the Inquiry can go any further. Its a non-issue but until its resolved, Linn is going to trade like an anchor. I own Linn with a very attractive average price per share but if I didn't own Linn, I wouldn't buy it until this is resolved. So you have sellers and an absence of buyers.

    Whether Mark Ellis is showing the discipline required of a CEO is another matter. By his own admission, he wasn't paying much attention to Linn's development efforts, he was concentrating on acquisitions. What the heck, it was only a few hundred million they dumped into dry holes in the hogshooter field.

    From SEC Website:
    "Common violations that may lead to SEC investigations include:
    • Misrepresentation or omission of important information about securities
    • Manipulating the market prices of securities
    • Stealing customers' funds or securities
    • Violating broker-dealers' responsibility to treat customers fairly
    • Insider trading (violating a trust relationship by trading on material, non-public information about a security)
    • Selling unregistered securities."

    Sentiment: Buy

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    • "Misrepresentation or omission of important information about securities "

      Not the case with LINE. Just go to LINE's website and look under presentations.
      Feb. 15, 2013 document LINN's Hedging Strategy Explained
      This document provides more information than required.
      Hedging Rationale
      Hedging Strategy
      Fact #1 – LINN is confident in the validity and accuracy of its audited financial statements.
      Fact #2 – LINN generates sufficient cash flow to cover its distributions
      Fact #3 – LINN does not always buy “in the money” puts.
      Fact #4 – LINN does not restructure its hedge book to manipulate earnings.
      Fact #5 – During 2012 LINN purchased $583 million of puts for the following reasons:
      Fact #6 – LINN’s publicly stated Adjusted EBITDA is the same that the company provides to its lenders.
      Fact #7 – LINN’s taxable income is low relative to its cash flow.
      Fact #8 – LINN only cancels out of the money hedge positions to comply with lender covenants.
      Fact #9 – LINN does not issue debt and equity securities to pay its distribution.
      Other Information:
      Go to the document yourself for details, I have rarely seen any company provide this much detail about their operations.

    • "Misrepresentation or omission of important information about securities " I think that is the one they are operating under with the way the puts are done...

    • I''m glad to see someone with authority clear Linn of any wrongdoing.

      How did you get to be more powerful than the SEC?

0.180.00(0.00%)May 23 3:59 PMEDT