Dan Schmeidler

The Long Case for Cheniere Energy

Stock is currently approaching $3. It amazes me that an alternative energy stock such as LNG is trading as if it is insolvent. Maybe investors are trading down the stock as a signal that this stock will not survive the credit crises. What amazes me even more is that brokerage and financial stocks are trading up (as the did in the last few days) when we are in the midst of a severe credit crunch or revaluation of credit worth. What can possibly lie in the future earning power of theses financials in comparison to that of a struggling alternative energy company. This kind of irrationality in the markets makes me hold on to my LNG position and even consider a further downward move by LNG as an even greater buying opportunity.