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Monday, December 29, 2008

Linn Pops Up Higher Today !

NEW YORK, Dec 28 (Reuters) - Despite plummeting natural-gas and oil prices in the past six months that sent Linn Energy's stocks falling, and frozen capital markets that could make it hard for the company to make acquisitions, concerns about the oil and gas driller are probably unwarranted, Barron's wrote in its Dec. 29 edition.

Linn, which is a master limited partnership that pays out about 60 percent to 70 percent of its quarterly cash flow to shareholders in tax-advantaged distributions, has used hedging to lock in the high prices of last summer's energy price bubble for the next three to four years, Barron's wrote.

on its third-quarter distribution of 63 cents per unit, the company is offering a current yield of more than 20 percent, Barron's wrote.

One Citigroup (nyse: C - news - people ) analyst said Linn's distribution level is 'relatively secure,' and has a one-year price target on its stock of $22, while another, at RBC Capital Markets, has a target price of $27, Barron's wrote.

Linn Energy shares closed at $11.98 on Friday in trading on the Nasdaq.
Linn Energy, LLC (Linn Energy) is an independent oil and gas company focused on the development and acquisition of long-lived properties in the United States. The Company’s oil, gas and natural gas liquids (NGL) properties are located in three regions in the United States: Mid-Continent, which includes the core operating areas Texas Panhandle and Oklahoma; Appalachian Basin, which includes fields in West Virginia and Pennsylvania, and Western, which includes the Brea Olinda Field of the Los Angeles Basin in California. The Company’s proved reserves, at December 31, 2007, were 1,616.1 billion cubic feet equivalent (Bcfe), of which approximately 64% were gas, 20% were oil, and 16% were NGL. Approximately 73% were classified as proved developed. At December 31, 2007, Linn Energy operated 5,638, or 77%, of its 7,305 gross productive wells

Thursday, December 18, 2008

Chrysler Hits the Wall !

Chrysler halts manufacturing as clock ticks on gov't bailout

Ailing US automaker Chrysler on Wednesday said it would temporarily halt manufacturing as demand plunges and the clock ticks down on a hoped-for bailout from the federal government.
Chrysler, the smallest of the Detroit Big Three automakers, and General Motors, the biggest, say they are on verge of imminent collapse unless the government throws them a financial lifeline.
Chrysler said it was halting its manufacturing for at least a month, beginning Friday, in response to a credit crisis and ongoing debate on a government rescue for the sector.
"As a result of the financial crisis, the automotive market remains depressed due to the continued lack of consumer credit for potential buyers," the privately held firm said in a statement.
"Last week several automakers announced significant downward adjustments in production for the first quarter of 2009, and to make sure our inventory remains aligned with market demand, Chrysler will also extend the holiday shutdown already in place."
As a result it said that "all Chrysler manufacturing operations will be idled at the end of the shift Friday, December 19, and impacted employees will not return to work any sooner than Monday, January 19, 2009."
Chrysler said it had informed the United Auto Workers union, employees and suppliers about the actions.
The company said that dealers have indicated "many willing buyers for Chrysler, Jeep and Dodge vehicles" but have been unable to close the deals, due to lack of financing.
The company, which is owned by private equity firm Cerberus, did not disclose the number of employees affected. A company fact sheet said Chrysler employed 63,480 as of September.
Chrysler has 14 assembly plants, 10 powertrain plants, four stamping operations and five manufacturing affiliations outside of North America.
The news came a day after the White House warned that the US auto industry would have to make "concessions" to win a government bailout.
President George W. Bush said late Wednesday he was "looking at all options," according to the transcript of a Fox News interview.
"A disorganized failure, disorganized bankruptcy or disorderly bankruptcy ... could cause great harm to the economy, beyond that which we're now witnessing. And that concerns me," Bush said.
"And the other point is that, I'm not interested in ... really putting good money after bad."
Asked when he will decide the auto question, the president replied: "I'm thinking through, you know, it needs to get done relatively soon."
The Big Three -- GM, Ford and Chrysler -- have warned that without a package of loans, millions of jobs could be lost, which they say would send ripple effects through the nation's already faltering economy.
The automakers have been seeking a bridge loan of some 14 billion dollars to help weather the crisis but it remained unclear if the US government will come up with the funds.
GM said last week it was idling 30 percent of its North American production "in response to rapidly deteriorating market conditions."
US auto sales dropped 37 percent in November amid talk of a potential bankruptcy at General Motors or Chrysler should Washington fail to deliver a massive bailout package.

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