Editor's Note: This article was originally published at 3:53 p.m. EDT on Real Money on June 18. To see Jim Cramer's latest commentary as it's published, sign up for a free trial of Real Money.
NEW YORK ( Real Money) -- Somehow, as Action Alerts PLUS people know, I have become Mr. Linn Energy (LINE). I don't want to be. I happen to like the stock. I have liked it from pretty much the time when Michael Linn started the company 10 years ago and came to New York to explain to me how the company worked and what it does. As someone who used to be a huge trader of options, I felt comfortable from the get-go with the company's strategy and accounting for its put and call strategy. I always wanted to know why other companies weren't similarly hedged. They should be. It makes so much sense. Why take the commodity risk if you can hedge it out?
I knew from time to time that people would not like this kind of accounting, which is why I have repeatedly shown the financials to my best forensic accounting guy who has repeatedly blessed it. I have sat down numerous times with Michael and with Mark Ellis, the current CEO. But we never pulled the trigger on the stock for the charitable trust until Linn made the offer for Berry Petroleum (BRY), because I believe Berry might have some of the largest undiscovered reserves in the country. It's an incredibly valuable property, much more than I think most people realize, that I have been enamored of from the moment when Core Laboratories (CLB) told me that there are some huge fields still to be discovered in this country, and I put two and two together and came up with Berry and Occidental Petroleum (OXY), another stock the trust owns.
There was only one problem, though. This company turned out to be the target of a group of short sellers who got together in unison and working with a contract research firm have performed one of the most well-orchestrated raids I have ever seen.I have to congratulate them, even though I would have thought such a thing in violation of the 1934 Securities Exchange Act. I get that because when I studied law I learned that FDR appointed Joseph Kennedy to the SEC because he knew that Kennedy orchestrated Linn-like raids and FDR wanted them stopped. Perhaps what's happened is that you are now allowed to do what FDR didn't want and get away with it. I don't think it is right, but I don't make the rules.
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