Gigem77

Natural Gas: An Energy Resource Whose Time Has Come

GAZ and HNU.TO are also natgas etfs. Most of the natgas E&P companies do NOT pay good dividends. Companies like APA and LINE have significant oil production that has helped weather this weak period for natgas prices. LINE operates like a royalty trust. The royalty trusts pay decent dividends and the Canadian royalty trusts (PGH, PWE, ERF etc) have some tax issues that must be considered.

If you like natgas as a transportation fuel, then consider CLNE, Boone Pickens entry into the space.

Rough Times Ahead for Natural Gas

UNG is a flawed vehicle. It trades at a premium to the NAV. UNG announced yesterday after the close that they were issuing more shares. That may not be enough to eliminate the premium, but the price dropped after hours to 10 bucks. The October natgas contract terminates trading on Friday, September 25th. "UNG’s investment strategy is to close out its positions and ‘‘roll’’ from the near month contract to expire to the next month contract during a four-day period beginning two weeks from expiration of the contract.” How many contracts will they close into the biggest glut of natgas in the last 20 years? Don't let the 2-3 day short covering rallies fool you into thinking the low is in place. Canadian natgas is projected to go below a dollar before winter and the US spot price for natgas is easily headed below 2 bucks.

Too Soon to Re-enter Oil Stocks?

Thanks for the chart.

Demand for energy is not destroyed, it is subdued or supressed. As prices fall, demand comes back. The EIA data show that over the past 4 weeks demand for gasoline rose week over week. Equilibrium, minus a bunch of speculators, is going to be re-established north of 100 and possibly 110 in oil. Once that becomes apparent the market will take off the discount currently applied to that list of stocks.

Buy Natural Gas - Cramer's Lightning Round (8/1/08

More on Cramer's awful timing calls. www.youtube.com/watch?...

Buy Natural Gas - Cramer's Lightning Round (8/1/08

Cramer and CNBC are in the entertainment business, not the market advice business. The best way to play Cramer is to short his picks. Don Harrold has a series of videos using Cramer vs Cramer to show how bad the picks are. www.youtube.com/watch?...