GKM

Filling Up on Natural Gas

I think we could easily see $14/mcf gas this summer. I'm just hoping that it pulls back to about $8.6 so I can load the boat. I also think a good strategy is to look for out of favor gassy juniors that don't do much hedging.

Further, with the Canadian royalty trust unwind in the mix, I wouldn't be surprised if you actually see reverse takeovers i.e. Company X a big energy trust wants to switch to a regular corporation so it invests in Company Y (a smallish producer) and then Company Y uses the proceeds to takeover Company X and voila you have a new regular corporate entity.