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Buy Linn Energy on a Pullback

by Sam Collins 10/12/09

Linn Energy LLC (LINE) -- This LLC trades as stock and, through its subsidiaries, engages in the development and acquisition of gas and oil properties in the United States.

Linn Energy Chart

Chart Legend

The stock is in a sharp uptrend, which despite a recent day of heavy profit-taking, remains in a strong bull market. Note the new buy signal from the stochastic, as well as heavy accumulation (green volume lines) since October.

But the stock is in a very steep incline and could have a sharp pullback. Cautious investors should wait for that pullback before buying, or take a partial position now and a full one later.

The stock currently pays a dividend of $2.52, which provides a dividend yield of more than 10%.

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