Netflix adds 5.3M subscribers in Q3 >>> READ MORE

5 Energy Stocks Loved By Billionaire Leon Cooperman

These energy stocks could be set to skyrocket

      View All  

Linn Energy

linn energy 185It’s been a battle of back and forth for investors in upstream master limited partnership Linn Energy (LINE). Allegations by various hedge funds and investment news outlet Barron’s have questioned the firm’s aggressive hedging practices and cash flows, and now the SEC is investigating. Those two factors are vital to the firm’s appeal — and its hefty 9.1% dividend yield — and the bears have pushed the stock down hard during the past few weeks.

But the bulls can count Cooperman among their ranks.

The hedge fund manager added nearly 3 million shares of the energy producer to his portfolio during the last quarter — bringing his total count to above 7 million. Overall, Omega Advisors isn’t concerned with how Linn Energy accounts for its hedging program. More importantly, Cooperman stated during an interview with CNBC that he had spoken to management of Berry Petroleum (BRY) about the firm’s proposed stock merger with Linn and cited that the company remains committed to that deal.

Cooperman estimates that Linn Energy’s net asset value is around $40 per share — well above the company’s current price of $33.

Article printed from InvestorPlace Media,

©2017 InvestorPlace Media, LLC