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 - Get Report) 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.
Shorts Battle Over Linn
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.