Natural gas prices (UNG) have surged recently in response to colder than normal winter weather. As natural gas prices have moved up, so have the stock prices of natural gas producers, including Quicksilver (KWK) and Ultra Petroleum (UPL). However, the stock price of the most levered natural gas play that I am aware of has actually declined substantially, likely due to tax loss harvest selling. This offers what seems to be a very attractive opportunity, albeit with a risk of permanent capital loss.
First, here is a chart of the abnormal cold weather. Note the higher than average "heating degree days" recently. This chart does not reflect the most recent winter storms of this...
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