NEW YORK (TheStreet) -- I was speaking with Jim Cramer today about Linn Energy (LINE), a holding in his charitable trust as well as a holding in my portfolio. He wanted to respond to what he's seen as unfair criticism of the company, particularly a very negative piece written in last week's Barron's magazine.
One of the major complaints in that article was an accounting device used by Linn, which hedges 100% of its production, of taking options contracts and booking them as an asset in their financial filings.
I agreed with Jim that the accounting practice, while not done by other energy companies of which I am aware, seemed a logical and proper activity considering LINE's structure as a master limited partnership and its use of financial instruments to fully hedge its physical production.
I talk more about Linn Energy and the possible motivations for the selling pressure with Jim in the video above.At the time of publication the author had no position in any of the stocks mentioned. Follow @dan_dicker This article was written by an independent contributor, separate from TheStreet's regular news coverage.
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