Linn Energy LLC (NASDAQ:LINE) has received negative news media attention recently regarding allegedly fraudulent activity in short cases, but the negative headlines against the MLP may be explained as complications that some investors do not understand given the MLP’s fairly complicated structure, says Ethan Bellamy, Senior Analyst at Robert W. Baird & Co.
“We are also big fans of Linn Energy and their pari-passu C-Corp vehicle, LinnCo (LNCO),” Bellamy said. “We think they’ve been excellent stewards of capital, and we think there are a number of near-term catalysts — potentially a shift to monthly distributions, potentially a C-Corp M&A deal executed by LinnCo and potentially another distribution increase — that could continue to squeeze the shorts.”
Bellamy says LinnCo currently looks attractive, as shorts were squeezed recently during intraday trading. He adds that the negative news regarding the master limited partnership are overdone, and does not believe the company has deceived anyone.
“They’ve been much in the news lately with a short case by an anonymous short seller that’s been circulating. That was picked up in Barron’s this past weekend in a negative article. We think the issues surrounding Linn are overdone. They’re fairly complicated, so they may be lost on the average individual investor, but the bottom line is we don’t think Linn has done anything fraudulent,” Bellamy said.
FOR MORE INFORMATION ABOUT THIS INTERVIEW CLICK HERE.
Linn Energy LLC (LINE) Develops LinnCo LLC (LNCO) to Access Capital to Fund Growth
March 25, 2013
Hype Around Alibaba Group Holding Ltd (BABA) Seems Justified
September 03, 2015
Federated Investors (FII) Weighed Down by Low Interest Rates and SEC-Reform Headline Risk
April 10, 2013
Negative Interest Rates from Europe are a "Folly" that May Influence the US Says Boston Advisors James Gaul
August 27, 2019
