Michael Michaud

NATCO Group: Energy Supply Shortage Will Power Growth

I didn't then and am not now looking at margins to make my position for Natco. I don't know whether or not a flood of oil tech companies will come into the business or not squeezing everyone's margins. I doubt it would happen that quickly, but you never know what the future will bring until rumors hit the street and it actually happens.

I've based my position on the technicals of the chart. I see solid long term support at the recent lows made on March 3 of $39.99 on much more than normal volume. Its looks like NTG might want to consolidate here for short time, but with oil now surging to 108, Natco could start moving up also.

Longer term, I see a break out of its recent high on December 21 2007 of $60.15 if oil keeps heading higher and all goes well with with the stocks fundamentals and other factors.

I hope I helped answer your question, even though I have not taken into consideration the possible effect of increased competition.

Good day, good investing and trading!