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Early last week, Linn Energy , LLC (LINE) came out the gate Gang Busters style as stocks shot up to a staggering 91.00% at one point during Monday morning trading because energy prices rose. Today, shares of the energy company fell again after shares previously hit $2 apiece during the oil market rally, closing on the day 20.69% down.
Shares of LINE have made a minor comeback, in that they are up just over 7%. This is not enough, however, to make up for the terrible day of trading.
The main contributor to this appears to be the business’s recent 10-K filing, which shows that the company is default status on multiple types of debt.
The current situation at Linn Energy is not looking well, especially with management suggesting bankruptcy could take place in the next 30 days or less. The thought of bankruptcy seems odd since the company has had strong cash flow numbers this year and positive cash flow next year at current prices.
This week, Linn Energy released its most recent quarterly earnings and outperformed our earnings estimate by 245.45%.
Linn Energy, LLC currently has a Zacks Rank #2 (Buy), which may very well change if bankruptcy is a strong possibility.
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LINN ENERGY LLC (LINE): Free Stock Analysis Report
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