DID LINN ENERGY

FINALLY STOP GOING DOWN?

We'll get a clue about this today after news last night that Omega Advisors bought Quantum's 4 million share stake. This yahoo message poster suggests that Omega has a long track record of being correct so we'll see. But consider this. Omega is getting 4 million shares that cost them about 23 bucks or so a share. If the Q1 2.52 distribution is correct they are getting a yield of about 11%. Would they have taken the stake if the 2.52 distribution were not going to happen? We've been saying all along that the market is telling us its either a screaming buy or that distribution is suspect and that a new position here could be a dice roll. The Omega purchase suggests the dice roll could have come up 7! Certainly the overhang of shares has just about played itself through as volume imploded yesterday and no visit to the new 52 week lows list.

If this is a typical Friday we won't see any major corporate headlines. Note Crosstex (XTEX) is doing a stock offering of under 2 million shares which by recent standards is small. No upgrades or downgrades so far but it's early.