Seeking Alpha

Goldman sees buy-the-dip opportunity in Linn Energy, LinnCo

  • Goldman Sachs sees the two-day 10% drop in Linn Energy (LINE -5.3%) following Q2 results as a buy-the-dip opportunity, maintaining Buy recommendations on LINE and LinnCo (LNCO -6.7%) with respective $34 and $35 price targets.
  • Goldman believes LINE was prudent in pulling back on plans for a distribution increase given uncertainties around the Berry Petroleum (BRY -1.2%) acquisition and coverage currently running below 1x.
  • The firm reiterates concerns over LINE's hedge accounting and maintenance capital are overblown.
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Comments (7)
  • jmjjmj1
    , contributor
    Comments (177) | Send Message
     
    This just in GS has a bridge in London they want to sell you call quick!
    9 Aug 2013, 12:31 PM Reply Like
  • grange402
    , contributor
    Comments (147) | Send Message
     
    Good time to buy.
    9 Aug 2013, 12:37 PM Reply Like
  • PendragonY
    , contributor
    Comments (7503) | Send Message
     
    If I didn't have such a large postion already or if the Berry deal was definately going thru (rather than just having management's assurances that it would), I would buy more now.
    9 Aug 2013, 02:05 PM Reply Like
  • Brunello52
    , contributor
    Comments (23) | Send Message
     
    Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.

     

    In trading on Friday, shares of Linn Energy LLC (NASD: LINE) entered into oversold territory, hitting an RSI reading of 29.9, after changing hands as low as $23.76 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 63.6. A bullish investor could look at LINE’s 29.9 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
    9 Aug 2013, 02:09 PM Reply Like
  • None1001001
    , contributor
    Comments (18) | Send Message
     
    One of my favorite quotes and a very good investing strategy. Why does everyone want to buy stocks at 52 week highs and never when they just got crapped on? Long run its MUCH better to buy the lows.
    12 Aug 2013, 09:24 AM Reply Like
  • spondrei
    , contributor
    Comments (78) | Send Message
     
    I bought 250 more shares of LINE at $23.90 + 5 LINE 27C Jan 14 options at $1.65. I am a believer of LINE mgmt and not to concerned about the (LOCAL) SEC audit. Every single MLP hedges and does their GAAP accounting the same way as LINE. I'm confident all will be ok, and then when the Berry deal closes you will see at least a $3 to $4 pop IMMEDIATELY..
    9 Aug 2013, 04:24 PM Reply Like
  • smurf
    , contributor
    Comments (4594) | Send Message
     
    A dip? More like a yawning chasm, in which you can throw good money after bad.
    9 Aug 2013, 08:24 PM Reply Like
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