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Bullish on Natural Gas Sector

UNG - Is Henry Hub (New York Mercantile Exchange) about $9.40 MBTU
GAS - Is AECO (Calgary Natural Gas Exchange) about $7.80 MBTU

Calgary prices are not undervalued, they always sell at discount to New York since supply is higher relative to demand, because Alberta is net exporter while New York is a net importer. Making the discount a structural issue, like the difference between WTI and Brent prices due to sulfur content. Both will move in the same direction. The one which will preform relatively better, will be the one where the supply and demand fundamentals deteriorate worst relative to the other.

GAS does not trade in the US.

Mistake: Larry you measured Natural Gas prices in MCF they are actually priced in MBTU. www.nymex.com/ng_fut_d...

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A Canadian Financial Blog

Deutsche Bank First to Market with Leveraged, Inverse Gold ETNs

In Canada we already have 200% leveraged commodity ETFs provided by Horizons BetaPro, below are some of them:

• Horizons BetaPro NYMEX® Natural Gas Bull Plus ETF
• Horizons BetaPro NYMEX® Natural Gas Bear Plus ETF
• Horizons BetaPro NYMEX® Crude Oil Bull Plus ETF
• Horizons BetaPro NYMEX® Crude Oil Bear Plus ETF
• Horizons BetaPro COMEX® Gold Bullion Bull Plus ETF
• Horizons BetaPro COMEX® Gold Bullion Bear Plus ETF

For more information visit : Tarik.ca
A Canadian Financial Blog

Bullish on Natural Gas Sector

I definitely agree with you. Using some simple mathematics I’ve calculated the cost of different types of energy forms.

As a Canadian living in Ontario I pay the following prices for retail electricity, natural gas and gasoline:

36.50 $/MBTU Electricity Retail Price
34.56 $/MBTU Regular Unleaded Gasoline Retail
15.22 $/MBTU Natural Gas Retail

Which leaves us with the astonishing discovery that: Natural Gas Sells at a 56 percent discount to retail Gasoline (as of December 2007).

To see the full analysis visit:
How much does it costs for 1 Million BTUs ? And the case for Natural Gas
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A Canadian Financial Blog

New Claymore ETFs Almost Have It All

Claymore has also released two brand new ETFs in Canada this week including :

- Claymore 1-5 Yr Laddered Government Bond ETF
- Claymore Natural Gas Commodity ETF

The Claymore Natural Gas Commodity ETF has been designed to track the performance of the benchmark NGX Canadian Natural Gas Index, less fees and expenses. The ETF will provide non-leveraged exposure to the Alberta natural gas market, by investing in physical natural gas forward contracts.

DEX 1-5 yr Laddered Government Bond Index is a Government only laddered bond index, selected from constituents of the DEX Universe Bond Index (formerly known as the Scotia Capital Bond Index). The Index is laddered into five (5) equally weighted buckets.

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A Canadian Financial Blog

Cheaper Alternatives to Exxon

EnCana (TSE:ECA) provides the best value out of all the large cap Canadian energy companies. Unlike Exxon they still have growing boe production, they trade at 14 times earnings, 2.5 times book, while having 17% net profit margins and 20% return on equity. EnCana also has strong dividend growth, with dividends up 800% in the last 5 years.

For More Analysis Visit : Tarik.ca
A Canadian Financial Blog

Proshares to Leverage Commodities

In Canada we already have 200% leveraged commodity ETFs provided by Horizons BetaPro, below are some of them:

• Horizons BetaPro NYMEX® Natural Gas Bull Plus ETF
• Horizons BetaPro NYMEX® Natural Gas Bear Plus ETF
• Horizons BetaPro NYMEX® Crude Oil Bull Plus ETF
• Horizons BetaPro NYMEX® Crude Oil Bear Plus ETF
• Horizons BetaPro COMEX® Gold Bullion Bull Plus ETF
• Horizons BetaPro COMEX® Gold Bullion Bear Plus ETF

For more information visit : Tarik.ca
A Canadian Financial Blog