Dicker: Linn Energy Is a Buy
One of the major complaints in that article was an accounting device used by Linn, which hedges 100% of its production, of taking options contracts and booking them as an asset in their financial filings.
I agreed with Jim that the accounting practice, while not done by other energy companies of which I am aware, seemed a logical and proper activity considering LINE's structure as a master limited partnership and its use of financial instruments to fully hedge its physical production.
I talk more about Linn Energy and the possible motivations for the selling pressure with Jim in the video above.
At the time of publication the author had no position in any of the stocks mentioned.
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