Linn Energy LLC (LINE): Today's Featured Basic Materials Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Linn Energy ( LINE) pushed the Basic Materials sector lower today making it today's featured Basic Materials laggard. The sector as a whole closed the day up 0.3%. By the end of trading, Linn Energy fell 39 cents (-1%) to $37.06 on heavy volume. Throughout the day, two million shares of Linn Energy exchanged hands as compared to its average daily volume of 1.3 million shares. The stock ranged in price between $36.86-$37.15 after having opened the day at $37.08 as compared to the previous trading day's close of $37.45. Other companies within the Basic Materials sector that declined today were: Andatee China Marine Fuel Services Corporat ( AMCF), down 15.1%, Kingold Jewelry ( KGJI), down 12%, Houston American Energy Corporation ( HUSA), down 8.5%, and Mexco Energy Corporation ( MXC), down 8.2%.
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Linn Energy, LLC, an independent oil and natural gas company, engages in the acquisition and development of oil and gas properties. The company's properties are primarily located in the Mid-Continent, the Permian Basin, Michigan, California, and the Williston Basin in the United States. Linn Energy has a market cap of $8.7 billion and is part of the energy industry. Shares are up 6.3% year to date as of the close of trading on Monday. Currently there are 10 analysts that rate Linn Energy a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Linn Energy as a hold. Among the primary strengths of the company is its generally strong cash flow from operations. At the same time, however, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

On the positive front, BMB Munai ( BMBM), up 19.1%, New Concept Energy ( GBR), up 18.5%, Platinum Group Metal ( PLG), up 17.7%, and China Shen Zhou Mining & Resources ( SHZ), up 12.9%, were all gainers within the basic materials sector with Weatherford International ( WFT) being today's featured basic materials sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the basic materials sector could consider Materials Select Sector SPDR ( XLB) while those bearish on the basic materials sector could consider ProShares Short Basic Materials Fd ( SBM).

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