More Trouble at Linn Energy (Barron's) Earnings Kickoff - Alcoa Reports Monday

timkcorp.com/jt

BARRON'S COVER

The New Breed of Income Fund

By Reshma Kapadia

Multi-asset income funds cast a wide net for yield, and take very different approaches. Here's a look a five of them that have achieved solid returns.

Barron's: A Return Visit To Earlier Stories: More Trouble At
Linn Energy
Jul 6 at 00:07

By Andrew Bary

      (FROM BARRON'S 7/8/13)
      Shares of Linn Energy (ticker: LINE) fell 29% last week, to $23.45, as
Wall Street reacted to the company's disclosure that the Securities and Exchange
Commission has launched an inquiry into the oil and natural-gas producer's
accounting.
      The focus on the SEC's inquiry, Linn said, was its use of non-GAAP
financial measures and its hedging strategy, plus its proposed merger with Berry
Petroleum (BRY). The SEC appears to be focused on the issues Barron's has
highlighted in three critical articles beginning with "Drilling into the
Numbers" (Feb. 18). It's unclear when the SEC will conclude its inquiry and what
it may decide.
     The inquiry and the sharp drop in shares of Linn units could imperil the
Berry deal, which bulls have counted on to bolster Linn's energy production and
financial results. Linn said it was committed to the transaction. Berry hasn't
said anything publicly since the SEC inquiry was announced.
      Kevin Kaiser, an analyst at Hedgeye Risk Management, wrote last week that
the SEC inquiry puts the Berry merger "at serious risk." He has been bearish on
Linn Energy.
      Our view has been that Linn units are worth no more than book value, or
about $17 a share, 28% below their current quote.

Barron's: Review & Preview -2-

Jul 6 at 00:09

Profile hits: NONE

      -- The Bank of Japan is widely expected to hold interest rates steady, but

concern about China's ability to achieve a soft landing is likely to top the

agenda.

      -- Treasury issues June budget numbers.

      -- Yum! Brands posts before the open.

      -- Alnylam Pharmaceuticals hosts a research-and-development day.

      Friday 12

      -- JPMorgan Chase andWells Fargo post second-quarter results.

      -- The preliminary July Reuters/University of Michigan consumer-sentiment

report is likely to be up, as consumers "generally feel better" about housing

and employment conditions, says Price.

      -- Eli Lilly posts before the market opens.

      -- St. Louis Fed's James Bullard and Philadelphia Fed's Charles Plosser

speak about monetary policy and the economic outlook at the Rocky Mountain

Economic Summit in Wyoming, hosted by the Global Interdependence Center.

      -- Cantel Medical splits, 3-for-2.

                            Coming Earnings

 Day                    Quarter  Consensus   Year   Ticker

                                  Estimate    Ago

M

Bank of the Ozarks        2Q       $0.57    $0.55    OZRK

WD-40                     3Q        0.56     0.57    WDFC

iGATE                     2Q        0.34     0.28    IGTE

Alcoa                     2Q        0.06     0.06    AA

Mercury Systems           4Q       -0.07     0.10    MRCY

T

Hi-Tech Pharm             4Q        0.65     0.73    HITK

Helen of Troy             1Q        0.71     0.74    HELE

Wolverine World Wide      2Q        0.34     0.41    WWW

W

MSC Industrl Direct       3Q        0.97     1.10    MSM

Yum! Brands               2Q        0.54     0.67    YUM

Cleco Hldg                2Q        0.66     0.64    CNL

VOXX Int'l                1Q        0.04     0.15    VOXX

Adtran                    2Q        0.16     0.30    ADTN

Family Dollar Stores      3Q        1.03     1.06    FDO

Fastenal                  2Q        0.41     0.38    FAST

Texas Ind                 4Q        0.19     0.08    TXI

Th

Independent Bank MA       2Q        0.59     0.54    INDB

Commerce Bancshares       2Q        0.71     0.76    CBSH

F

JPMorgan Chase  &  Co     2Q        1.43     1.09    JPM

Webster Fin'l             2Q        0.47     0.44    WBS

Wells Fargo               2Q        0.92     0.82    WFC

(Earnings are diluted and report dates are tentative. All forecasts and

historical numbers exclude extraordinary items by accounting definitions.)

Source: Thomson First Call

                   Consensus Estimate

Day   Time

                                                 Consesus Est  Last Period

M    3:00   May Consumer Credit                   $13.0 bil    $11.06 bil

W   10:00   May Wholesale Inventories               0.3%         0.2%

Th   8:30   June Import Prices                      0.0%        -0.6%

F    8:30   June PPI                                0.5%         0.5%

     9:55   July Michigan Sentiment (p)            84.8         84.1