Royale Energy: Rising Oil Prices Good for Natural Gas Stocks

Since the beginning of this year, the price for this fuel source has increased by almost 50% — though compared to crude oil, it’s positively cost-efficient and currently accounts for around 40% of the electricity generated in the U.S.

In December of 2005, natural gas reached its peak price of $15 per million BTUs (British Thermal Units). This was due to many factors including unusually high temperatures over that summer and the devastating hurricanes that marked that year.

New record highs for natural gas prices?

Prices are currently around $12 per million BTUs. But this year, a cold winter has already had an impact – reducing inventories by 16% compared to last year.

Adding to this, less LNG (liquid natural gas) imports are anticipated and NOAA, the National Oceanic and Atmospheric Administration, is predicting two to five major hurricanes with Categories of 3 or above this season.

This could mean major profits for investors and there are plenty of potential winning natural gas stocks out there.

My favorite is a small San-Diego-based supplier that is having a banner year…

My natural gas stock choice is Royale Energy Inc.

Royale Energy Inc. (ROYL) is experiencing 52-week highs daily but it still has a long way to go.

Operating as an independent oil and natural gas producer in the U.S., the company owns, operates and leases oil and gas interests in California, Texas, Utah, Oklahoma and Louisiana. It also engages in the developmental and exploratory drilling.

Don’t wait too long to make your move…

In March, the company announced that its oil and gas reserves were up 28% and rumor has it that they are expecting to confirm a significant reserve discovery in the next few weeks.

Happily, Royale Energy is no fly-by-night operation — it’s been around since 1986.

With a market cap of about $59 million this company has the potential — and the room — to grow.

In 2006, Fortune magazine named it one of America’s 100 top fastest growing small public companies – looks like they were right on target.

The stock price has already seen a 69% increase this year so you don’t want to wait to jump onboard for maximum gains.

If your looking for a winning natural gas stock, I recommend you buy shares of Royale Energy Inc.  at or under $9. I’m looking for (at least) a 20% increase in price by January 2009.

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Comments

[Love toshort]

This artcile does not give me a single reason to buy the stock. All it says is "Don’t wait too long to make your move" and "you don’t want to wait to jump onboard for maximum gains" which sounds like a investor relations firm doing the classic pump and dump.

And you say the stock is up 69% this year??? What chart are you looking at? The stock has risen more than 400% since the beginning of the year!

You article may have had a little merit if had been written at a time when the stock was down around 4. Up hear in the clouds north of 8, all I can say is that I hope you get lucky, because it certainly isnt your fundamental analysis that will lead you to gains.

[J.ChristophAmberger]

Hello Love to short: I appreciate your input and you are certainly correct, the 69% this year was a typo. The stock price went up 60% in the month of May. And if you've checked the stock price of late, even if one got in at $8.00, they are seeing 20% gains now.

[investorslive]

ROYL mention here

www.investorslive.com/.../

[Love toshort]

Laura, I said that "I hope you get lucky" because it is not your company fundamental analysis that will lead you to these gains. You in fact did get lucky, and I applaud you for that. But again, it is purely momentum traders driving the stock higher, and not fundamentals as your article vaguely describes.