Linn Energy Sinks On Low Oil, Negative Comment

Linn Energy LLC LINE fell sharply Monday as oil hit new lows and an anonymous author on Seeking Alpha urged traders to sell the stock.

Brent dropped to its lowest price Monday since July 2009, down more than 1 percent to $61.06 a barrel on ICE Futures Europe.

The Seeking Alpha author, identified as ""Seeking Profits," said Linn's "high debt" leaves it prone to cutting its distribution.

Linn's structure is similar to a master limited partnership and pays out profits in periodic distributions to shareholders.

Linn told investors last month it expects to incur a fourth-quarter shortfall of net cash from operating activities of $94 million after distributions and adjustments.

The separately traded LinnCo LLC LNCO, which exists solely to hold Linn shares, was similarly dismissed as an investment by the Seeking Alpha author, who has produced about 19 items for the website since December 1, including at least one earlier item urging investors to sell Linn and LinnCo.

Seeking Alpha describes the author as a "full-time trader" who trades "frequently" and has "no position" in the stocks he or she writes on.

Linn closed at $9.83, down 18.1 percent; LinnCo changed hands at $9.16, down 16.9 percent.