All of this valuation conflict for Linn is on the back drop of the Berry Petroleum (BRY) acquisition, still to be approved by Berry shareholders.
Now here is where the trading psyche works to make the Linn shares a better "bear raid" opportunity. Linn uses subsidiary Linnco (LNCO) shares as capital for purchasing Berry, but negative news makes that acquisition less appetizing for Berry shareholders, making the acquisition less likely and forcing down Linn shares even further. Helping to dissuade Berry shareholders into approving the Linn deal is the smartest trading move for funds that are short Linn shares.
Much of the outcome for Linn might depend on whether the "raid" is successful and the Berry deal closes. But the ultimate value of the shares and whether they're worth buying is now less about the financials and fundamentals, and more about the media war that's being engaged.
And that's the toughest variable for any trader to value.At the time of publication, Dicker had no positions in securities mentioned. Follow @dan_dicker This article was written by an independent contributor, separate from TheStreet's regular news coverage.
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