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. Follow @dan_dicker This article was written by an independent contributor, separate from TheStreet's regular news coverage.
NEW YORK ( TheStreet) -- Linn Energy ( LINE) has become a news story without much news, courtesy of TheStreet founder Jim Cramer and the very aggressive short war being engaged by Barron's magazine and a research firm looking to make a name for itself. So the battle over Linn is pitched, but let's take a look, not as an analyst but as a trader should -- trying less to find a winner in the numbers and rhetoric, but instead understanding the trading psyche that encircles this beleaguered name. First, understand that Linn uses the Master Limited Partnership structure in a very unique way and some could argue it abuses this structure, both in the tax advantages it gains and the distributions it looks to pass along to its shareholders. I won't opine on whether turning an energy company into a registered MLP is a fair or unfair organizational trick, but I will say that it can make proper valuation of this name difficult for the retail investor -- there is no other energy company quite like Linn.