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Jim Chanos - a bell-ringer in 2009 when he said there was nothing left to short - says there's...

Jim Chanos - a bell-ringer in 2009 when he said there was nothing left to short - says there's plenty to keep his firm busy now. Avoid leveraged natural gas companies "like the plague," he says. Their balance sheets may look okay thanks to perverse accounting rules, but cash flows tell a different story. "It's a pretty good bet" he's short any leveraged players that were buying gas properties 5 years ago and looking to sell now.
Comments (8)
  • SoldHigh
    , contributor
    Comments (1001) | Send Message
     
    Even with massive reserves, Nat gas prices will trend higher in the future due to:

     

    1) Onerous EPA regs from the anti-US energy Obama admin and,
    2) Global demand
    3) Nat gas Export

     

    How well Nat gas companies perform in light of these facts remains to be seen.
    24 Dec 2012, 09:54 AM Reply Like
  • Bob Curtin
    , contributor
    Comments (67) | Send Message
     
    Either Mr Chanos is very, very late shorting pure nat gas plays or, more likely, getting ready to cover and hopes talking his book will trigger another leg lower giving him cheaper prices to cover at. Hey, Mr. Chanos how about telling us what you PLAN to buy/sell vs. talking your book.
    24 Dec 2012, 10:01 AM Reply Like
  • Fear & Greed Trader
    , contributor
    Comments (4560) | Send Message
     
    AMEN !!
    24 Dec 2012, 10:04 AM Reply Like
  • Crude Oil Trader
    , contributor
    Comments (309) | Send Message
     
    Pull back in the dollar is giving us our entry on these companies, Chanos is just setting them up to flush out the shorts. Still a trade, not an investment....yet.
    24 Dec 2012, 10:08 AM Reply Like
  • Uncle Pie
    , contributor
    Comments (2694) | Send Message
     
    The Chinese, Malaysians and Exxon are willing to pay very substantial premiums for companies with natural gas assets in western Canada. When they're not buying entire companies, they're buying assets piecemeal or entering into joint ventures.
    24 Dec 2012, 11:14 AM Reply Like
  • k2caliguy
    , contributor
    Comments (59) | Send Message
     
    "Their balance sheets may look okay thanks to perverse accounting rules" he is knocking every public traded company and the FASB with resources on their balance sheet. what a joke, upl took write down of their assets, that's correct GAAP.
    24 Dec 2012, 03:45 PM Reply Like
  • Bob de'Long
    , contributor
    Comments (696) | Send Message
     
    Most of you are grasping at straws. Natural gas stocks now are in the speculative category. They are ok for day trading or other short-term moves… if you get them near or below their post-March-2009 lows.

     

    You need to have your band play "The World Turned Upside Down."
    25 Dec 2012, 08:52 AM Reply Like
  • smurf
    , contributor
    Comments (3787) | Send Message
     
    I would listen to Chanos. He was right once, probably is again. Unless you think he's a one hit wonder, like Joe Granville.
    25 Dec 2012, 09:43 AM Reply Like
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