Saturday, July 20, 2013

Linn Energy (LINE) - Upgraded by Goldman Sachs

Shares of Linn Energy Rose this week bouncing back from a low of 22.79 early this month due to short sellers HedgeEye & a Bearish article by Barrons Questioning Linn's valuations and the proposed merger with Berry Petroleum (BRY). Linn Energy Now trades at 27.99 as of July 19th gaining back some of it's losses.  This is due to the Upgrade it received from Goldman Sachs wednesday July 17th :  Analyst Theodore Durbin upgraded Linn to "Buy" with a $36 price target. He said that even taking into account the company's recent problems the recent sell off of its shares wasn't warranted and creates an attractive entry point for investors. 

There Appears in my opinion to be more upside left in (LINE), Not only because of the Goldman Sachs Upgrade. Lets Take a look at Linn energy's Historic valuations (see chart Below) 
Chart from Yahoo Finance 

Linn Energy Traded in the $40 range not to long ago Prior to the short seller attack. 

Another positive factor that should be taken into consideration is that Management has stated that they are switching from quarterly to monthly dividends!

LINN Energy and LinnCo Announce Monthly Distribution and Dividend

HOUSTON, July 1, 2013 (GLOBE NEWSWIRE) -- LINN Energy, LLC (Nasdaq:LINE) and LinnCo, LLC (Nasdaq:LNCO) announced today distributions and dividends, respectively, for the month of April 2013.
LINN Energy, LLC declared a monthly cash distribution of $0.2416 per unit, or $2.90 per unit on an annualized basis, for all of its outstanding units. The distribution will be payable July 15, 2013, to unitholders of record as of the close of business on July 10, 2013.
LinnCo, LLC declared a monthly cash dividend of $0.2416 per common share, or $2.90 per share on an annualized basis, for all of its outstanding common shares. The dividend will be payable July 16, 2013, to shareholders of record as of the close of business on July 10, 2013.
That means that Linn Energy is Yielding 12% annually and will be paying out Dividends monthly!
I consider (LINE) to be a buy and an even stronger one below the 28$ range

Advisory: I currently own shares of LINE

How to Invest in Mongolia - Mongolia Growth Group. TICKER SYMBOL (MNGGF)

Mongolia has one of the fastest growing economies with GDP growth in the teens! While here in the U.S. and many other developed nations are lucky to have low single digit GDP growth.
The reason for this Growth are the vast untouched resources that the nation has. Big mining companies Like Rio Tinto and Ivanhoe Mines are setting up shop there and are Currently building Copper and Coal mines.
Mongolia is next to China which is the worlds largest consumer of copper.
-
But how can investors like me and you capitalize on the future growth of the mongolian economy?
Enter Mongolia Growth Group
(Business Summary 
Mongolia Growth Group Ltd. operates as a real estate and financial services company in Mongolia. It operates through Investment Property Operations and Insurance Operations segments. The company engages in the ownership of retail, office, and residential investment properties; management of investment properties; repair, construction, and development of investment properties; underwriting of property and casualty insurance risks; and sale of property and casualty insurance. Its insurance products comprise motor insurance products, including voluntary motor third party liability; property; accident medical; and travel and liability insurance. The company was formerly known as Summus Capital Corp. and changed its name to Mongolia Growth Group Ltd. in February 2011. Mongolia Growth Group Ltd. was incorporated in 2007 and is headquartered in Calgary, Canada.)
excerpt from Yahoo Finance  

As you can see, the Company is headquartered in Canada and is Independently audited by Pricewaterhousecoppers. Listed in Canada as (YAK) and here in the U.S. as (MNGGF). The President of the Company Mr. Harris Kupperman Is the Former successful Hedge fund manager of Praetorian Capital, He Started Mongolia Growth Group after traveling the mongolia and seeing the extraordinary economic growth taking place there. He became frustrated realizing that there weren't many invest opportunities for individual investors other than mining companies which operate in a highly cyclical and political environment. 

Mongolia Growth Group is focused on investing in Retail and office space property in the capital city of Ulaanbaatar, with the basic idea that as the mining companies move in and create jobs real estate value will go up. They also have an insurance unit on the side.
It Seems clear that even though Mongolia growth group is still a very young company which is yet to become cash flow positive, That they have a lot going for them and have Acquired a large amount of Assets in a relatively short time frame.
-
Lastly and most importantly in my opinion is the fact that Senior Management & the Board of Directors own 33.5% of the Shares! That large amount of insider ownership Speaks volumes about the confidence Mr. Kupperman and Co. have about the Future of the company.

This was meant to be just a quick overview of the potential of MGG (MNGGF). I will go into further detail and bring up current company events in the future.

Advisory: I Currently own shares of (MNGGF)