Linn Energy LLC (LINE), SandRidge Energy Inc. (SD): Listen to This Billionaire on These Two Stocks

Page 1 of 2

You can make a lot of money by following the advice of a billionaire. That’s why I think you should follow what Leon Cooperman, the billionaire and founder of hedge fund Omega Advisors, has to say about two energy stocks. I’ve been following both companies for quite some time, and I agree: Both Linn Energy LLC (NASDAQ:LINE) and SandRidge Energy Inc. (NYSE:SD) have the potential to make investors a lot of money.

Source: LINN Energy.

Cooperman has been fairly vocal in his support of Linn Energy LLC (NASDAQ:LINE) as it has battled negativity this year. Recently he wrote a strong letter to the editor of Barron’s refuting several negative stories it had published this year. He even goes so far as to say that the reporter responsible for the stories is “in the vise of a small group of unprincipled short sellers.” He ends his letter defending Linn Energy LLC (NASDAQ:LINE) by saying that his firm is “convinced of the professionalism of the company’s management.” Further, “we are optimistic about the company’s future growth and financial performance; and we believe strongly that the distortions of the three Barron’s articles will not, in the end, carry the day.”

Linn Energy LLC (NASDAQ:LINE)I’m convinced that he’s right to be bullish on Linn Energy LLC (NASDAQ:LINE). I’ve been an investor in the company practically since it went public in 2006. The recent negativity on the company will eventually blow over, as it always does after these “bear raids” end. The biggest form of uncertainty is that these negative attacks have pulled in the SEC to investigate. That’s putting the complex merger involving Linn Energy LLC (NASDAQ:LINE), its affiliate LinnCo LLC (NASDAQ:LNCO) and Berry Petroleum Company (NYSE:BRY) on shaky ground.

If the merger falls through, LINN could struggle to grow, because the company’s main source of growth is acquisitions. One of the purposes of taking LinnCo LLC (NASDAQ:LNCO) public was to help it in its quest to acquire additional energy reserves, particularity companies such as Berry Petroleum Company (NYSE:BRY). That being said, if the SEC finds nothing wrong with Linn Energy LLC (NASDAQ:LINE)’s accounting, and the merger with Berry Petroleum Company (NYSE:BRY) goes through, LINN’s units could skyrocket. According to Cooperman, and a number of Wall Street firms including Stifel, the company is worth about $40 per share, which would make it worth substantially more than where it’s currently trading.

Source: SandRidge Energy.

The second energy stock Cooperman is bullish on is SandRidge Energy Inc. (NYSE:SD). At a recent conference, the billionaire called out the oil and gas producer as one of his top 10 stock ideas. He thinks the company could be a “potential double” and that it has the best risk reward of the 10 stocks he named.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!