Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil and gas company Linn Energy (Nasdaq: LINE ) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.
With that in mind, let's take a closer look at Linn Energy's business, and see what CAPS investors are saying about the stock right now.
Linn facts
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Headquarters (founded)
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Milpitas, Calif. (1981)
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Market Cap
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$1.7 billion
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Industry
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Independent oil and gas
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TTM Revenue
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$895.1 million
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Management
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Founder/CEO Michael Linn
CFO Kolja Rockov
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Return on Capital (average last three years)
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3.4%
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Dividend Yield
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15.7%
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Competitors
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EV Energy Partners (Nasdaq: EVEP )
Atlas Energy Resources (NYSE: ATN )
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CAPS members bullish on LINE also bullish on
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Chesapeake Energy (NYSE: CHK )
Freeport-McMoRan Copper & Gold (NYSE: FCX )
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CAPS members bearish on LINE also bearish on
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StatoilHydro (NYSE: STO )
TransGlobe Energy (Nasdaq: TGA )
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Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, fully 347 of the 361 members who have rated Linn -- some 96% -- believe the stock will outperform the S&P 500 going forward. These bulls include CAPS All-Star aracer and HidalgoTradingCo.
Late last month, aracer kept the bull case short and sweet: "Good company with good yield. $100M buyback in effect."
A pitch from HidalgoTradingCo just a day earlier shares that bullish attitude, citing Linn's aggressive hedging strategy and high yield as the main reasons to feel safe:
They have oil locked in at $90 for the next two years. Nat Gas at over 8.40 for three. They pay a div of 17%. What a Safe place for your money and hey...you make more dough here then in any money market etc. Buy something that pays you more IF it goes down. I believe we are headed back to $20 a share however.
What do you think about Linn, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free -- simply click here to get started.
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