LINE & LNCO for High Yield + Growth

[dan_s]

Generally speaking, what a retired income investor needs most is an investment with a high, safe, and growing yield.

That is why Linn Energy LLC (NASDAQ: LINE ) and its non-partnership alternative, LinnCo LLC (NASDAQ: LNCO ) , make for quality, high-yield investments that income investors, including retirees, should at least have on their radar -- and possibly in their portfolios.

Full article: http://www.fool.com/investing/general/2 ... nt-st.aspx

Linn Energy's balance sheet should be in good shape at year-end, they have almost all of their production hedged through 2016 at good prices. The dividends are secure and I believe the share price of both LINE and LNCO has 20% upside within 12 month. - Dan

[ghrcap]

Another income opportunity I wish you'd invite to host a lunch in Dallas is The Cushing MLP Total Return Fund (SRV). Alerian is the better known company with a similar vehicle that does not produce a K-1 for its investors, but yields considerably less. SRV is a closed end fund that pays $0.225 per quarter (10.6% annual yield), but trades at a premium to NAV so many closed end investors don't like it. They lost money when they came public and listed so their historical returns don't look great either. They use options and leverage to generate their excess returns and some of it is return of capital which is scorned by some analysts but actually works well in IRA's. I saw them a few years ago at an IPAA or EnerCom meeting so I know they are interested in promotion and might do a lunch for you. I'm interested in learning how much leverage they actually use and what the risk level actually is. Mr. Jerry Swank, is Founder, Managing Partner & CEO - Swank Capital & The Cushing Funds. Swank is often quoted in this space.

[dan_s]

Thanks for the idea. I will call them next week.

It is getting tougher to get companies to host luncheons for us in Dallas because our attendance is so much less up there. We are now getting 100+ at every luncheon in Houston.