Two Stock Ideas for a LNG World

Liquid Natural Gas [LNG] allows for the transport of fuel from areas of excess supply to areas of excess demand (largely American consumers and businesses). It's growing in popularity because of its relative environmental friendliness (there is no environmental cleanup needed for LNG spills on water and there has never been a fire, significant spill or accidental death on an LNG ship). It's a great way to bring geographic source diversification -- which is very good for pricing.

Can I take a moment to insert a few stock ideas here?

LNG will continue its secular growth trend within the current clean energy landscape. Yet storage and transport facilities are extremely rare and, with a required 40 permits to build a new one, assets are fixed in the short to medium term.

Large plays on my bullish view on LNG include Foster Wheeler (FWLT) and Korea's Daewoo Shipping (Korean ticker: 6211732). Daewoo has a 3 year manufacturing backlog for LNG tankers, a highly specialized product for the alternative energy world. If you can trade the stock, I recommend it. One other point: a favorite commodity of mine -- nickel -- is a required input for tankers.

Comments

[Mad]

Daewoo Shipping? Did you mean Daewoo Shipbuilding & Marine Engineering Co Ltd?

[JaimiGoodfriend]

Yes, I meant Daewoo Shipbuilding & Marine Engineering Co Ltd. I apologize.