4-Star Stocks Poised to Pop: Linn Energy
By
Brian D. Pacampara
June 4, 2009
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Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil and gas company Linn Energy (Nasdaq: LINE) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Linn's business and see what CAPS investors are saying about the stock right now.
Linn Energy facts
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Headquarters (founded)
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Houston, Texas (2003)
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Market Cap
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$2.22 billion
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Industry
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Oil and gas exploration and production
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Trailing-12-Month Revenue
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$674.4 million
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Management
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Founder/CEO Michael Linn
CFO Kolja Rockov
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Compound Annual Revenue Growth (over last three years)
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123.3%
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Dividend Yield
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12.3%
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Competitors
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Anadarko Petroleum (NYSE: APC)
Pioneer Natural Resources
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CAPS members bullish on LINE also bullish on
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Transocean (NYSE: RIG)
General Electric (NYSE: GE)
Apple (Nasdaq: AAPL)
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CAPS members bearish on LINE also bearish on
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D.R. Horton (NYSE: DHI)
Morgan Stanley (NYSE: MS)
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Sources: Capital IQ, a division of Standard & Poor's, Yahoo! Finance, and Motley Fool CAPS.
Over on CAPS, 525 of the 541 members who have rated Linn -- some 97% -- believe the stock will outperform the S&P 500 going forward. These bulls include can0bean and All-Star jsikorsk.
Two weeks ago, can0bean tapped the stock as a smart way to generate some income: "The dividend is outstanding. The balance sheet looks good. Oil will only go up in the long term. Management is savvy. P/B is under 1. I'm no pro, but this looks like a winner to me."
In a pitch from two days ago, jsikork highlights some important insider info:
It should be noted that all of the top three executives have large stakes in the company, with founder and CEO Michael Linn owning over two million shares. These guys have their interests aligned with ours and have a vested interest in keeping the dividend going (at the current rate, CEO Linn's shares bring him in almost $6 million annually).
What do you think about Linn Energy, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.
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