Seeking Alpha

Mad Hedge Fund ...'s  Instablog

Mad Hedge Fund Trader
Send Message
John Thomas graduated with a bachelor’s degree in biochemistry with honors and a minor in mathematics from the University of California at Los Angeles (U.C.L.A.) in 1974. He moved to Tokyo, Japan where he was employed by a medium-sized Japanese securities house. Thomas became fluent in Japanese... More
My company:
Mad Hedge Fund Trader
My blog:
Mad Hedge Fund Trader
  • Reprint of April 14 Nat Gas Recommendation 0 comments
    May 10, 2009 12:15 AM

    (Dated April 14, 2009) “OK, enough is enough! Right here, at $3.60, is where you buy Natural Gas ($NATGAS)! After peaking at $13.50/btu last year, it has become the red headed step child of the energy complex, plunging a gut churning 74% to a low of $3.50. To see demand this weak coming out of a cold winter, is nothing less than stunning. The credit crisis has forced US companies like Chesapeake Energy (NYSE:CHK) and Devon Energy (NYSE:DVN) to scale back exploration, so the US rig count has dropped by half. The price collapse is welcome news for consumers, as NG is an essential raw material for making naphtha, fertilizer, and plastics and accounts for 20% of US electric power generation. It also is a favored fuel of the green crowd, as the only byproducts of its combustion are carbon dioxide and water. The industry was making the leap from a domestic industry to a global one, just as the global recession punched it right between the eyes. The completion of six liquefaction plants in Qatar, Russia, Indonesia, and Yemen, costing $48 billion, is expected to boost global production by 25% this year, and more big plants are coming on stream in the near future. Below $3.50/btu the big producers start shutting in supply, which will cause the glut to disappear rapidly. If I’m right, and those really are crocuses out there and not some florid hallucination, then it’s time to load the boat with NG.”  ...

Back To Mad Hedge Fund Trader's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.