Barron's Finds a Win in Linn

Thu, 01 Jan 2009 15:52:01 -0500

Greg P:
I am sitting here on the couch with last week's copy of Barron's. Why should I believe their analysis of LINE (which is appealing) when I believed their analysis of LEH in June 2007? I recognize that they have been correct in the past on many occasions but the catastrophic failure of recommending LEH 15 months before they went bankrupt causes me to pause. I rode LEH into the ground as I felt it was an overreaction to sell based on external pressures (read credit freeze). I don't have access to the inside info that a Barron's reporter does so due diligence on my part can not go much deeper than reading articles and posts on the web (much of which is useless as you stated in a previous post). Please comment. I am a new investor and trying to learn. Any suggestions?
Thanks.

On Dec 28 03:54 PM Greg Pinelli wrote:

> It's amazing how little some people seem to know about an equity
> but feel compelled to say something. Barron's is spot on..LINE is
> one of the best, if not THE best, safe haven oil/gas company in the
> US. The particular structure of the company, whether LLC or MLP,
> is not nearly as significant as the nature of its asset base and
> its committment to investor distributions..please consider...
> 1. LINE is fully hedged thru 2009 at prices that mean it's payout,
> regardless of spot prices of oil, is assured.
> 2. Cash flow is the dominating feature of all the company's structures
> like this (and also for Royalty Trusts or MLPs..etc). Anyone who
> looks at the financials on Google and determines LINE or PWE or LGCY
> are deficient simply isn't doing their due diligence.
> 3. There has NOT been substantial insider sellng..shares have been
> sold by officers in a very orderly (per SEC requirements) manner
> and insiders have substantial positions.
> 4. Over a decades worth of reserves and a very forward looking management..
>
> As for the nmedia..what media do some of you mean? CNBC..Bloomberg's...Wa...
> Journal??? Barron's has ALWAYS been one of the more iconoclastic
> and skeptical of all the print equity journals...I listen to the
> media most of the day at the financial sites and the overwhelming
> tone has been negative..I hear varied views and counterviews.
Nice
> synopsis of the article...LINE is going to prove highly profitable
> to investors with enough cajones to put their money on the table.

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Barron's Finds a Win in Linn