Monday, October 20, 2008
(Cont'd from above)...

The first one, a stock that's been decimated, through no fault of its own, but because of its ownership structure, is Linn Energy, LLC (LINE).

Those who watch the show regularly know that this is one that I recommended as an ultra-high-yielding oil and gas explorer, back on October 2, at $15.29, about 50 cents higher than where it went out today.

I said it was one our money machine stocks, because of its yield, which is an astonishing 17%.

This stock has been trampled... and not because of falling oil and gas prices. The company has a high amount of hedging, meaning it has locked in higher prices for its oil and gas... 98% of its production or more from this year through 2011...

LINE was savvy... It anticipated the declines in oil and natural gas, and immunized itself against them.

It got crushed anyway, because it had the misfortune of having Lehman Brothers as its largest shareholder. As of February 14th, Lehman owned a 13% stake in LINE. And, thanks to Lehman's collapse, you can imagine that their stake is going to be either totally liquidated, or is on the way to be totally liquidated. When the margin men come in, they don't use lapriscopy. They use hacksaws and drilling...

And LINE didn't just have Lehman Brothers as its #1 shareholder. It also banked with Lehman. What a misfortune...

As of now, Lehman owes this company $68 million smackers. I say, hey, good luck...

LINE's stock may have been broken by Lehman, but the company is still sound. The production is hedged. I believe their dividend is safe, and now the company is pushing back with a $100 million buyback, not to mention lots of insider buying.

LINE, with its 17% yield, is a fabulous capital preservation stock that no one is talking about, because people didn't know about this Lehman ownership.

For those of you who are new to the show, because of the article in The New York Times today... I'm trying to get you conserve and protect your money until things get better. And, look, I love a plus-400 day, but let's face it, October's been a tough month.

I am trying to keep you in the game. Linn Energy, LLC (LINE) is all about that protection racket, which is why I want to talk to the company's chairman and CEO, Michael C. Linn.

Mr. Linn, welcome to Mad Money...

Jim's comments AFTER the interview:   Alright, the mystery's been solved guys... You get 17%, because the stock's gone down. He's told you that that yield is safe. I think that that stock should be bought, now that the mystery's been cleared up... that I believe... he didn't point-blank say it... that Lehman had a fund... the fund blew up... they sold everything... they knocked it down... Your opportunity.

Read Jim's next Segment here