Linn Energy LLC (LINE), SandRidge Energy Inc. (SD): Listen to This Billionaire on These Two Stocks

Here again, Cooperman is noting the real tangible value some investors are missing. In this case, it’s the company’s Mississippian Lime position, which is a high-growth oil asset. This year alone, SandRidge Energy Inc. (NYSE:SD) expects to grow its oil production from the play by 64%. That’s really important, because 80% of the Mississippian’s cash flow comes from oil.

The company has come a long way over the past year in cleaning up its act. It sold assets to repair its balance sheet so that it now has enough capital to develop the Mississippian through 2015. In addition, the company recently fired embattled founder and CEO Tom Ward after a long proxy battle with shareholders. With this uncertainty lifted, investors can focus more on the company’s operations. Led by the tremendous potential of the Mississippian, the company has a very compelling future, which is why I agree with Cooperman’s belief that the stock has the potential to double from here.

Final Foolish thoughts
Maybe I’m suffering from a bout of confirmation bias, but I agree with Cooperman on both picks. Linn Energy LLC (NASDAQ:LINE) is a great income growth stock, while SandRidge Energy Inc. (NYSE:SD) is a turnaround stock that’s just getting ready for that turn. That’s why I think investors should listen to what Cooperman is saying and dig a little deeper into both stocks.

The article Listen to This Billionaire on These 2 Stocks originally appeared on Fool.com and is written by Matt DiLallo.

Fool contributor Matt DiLallo owns shares of Linn Energy, SandRidge Energy, and LinnCo. He also has the following options: short October 2013 $25 puts on Linn Energy, short September 2013 $5 puts on SandRidge Energy, and short November 2013 $25 puts on LinnCo. The Motley Fool has no position in any of the stocks mentioned.

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