najdorf

Five North American Natural Gas Buys

It's funny that companies with years and years of reserves in the ground get valued exuberantly when NG is at 13 and pitifully when NG is at 3, almost within a year of one another. NG is a better fuel than oil in terms of pollution, accessibility and now cost. Do you really think NG demand isn't going to be up again next year or the year after? Companies would have to be crazy not to be developing ways to better store and use $3 NG while oil is at $70. It's not like there's going to be a magical point when NG sells at $1 and ECA stock is also at $1 and you can buy it with no risk...everyone else is looking for the cheap entry point too and it won't be there. You're not going to get better deals than March's for a long, long time. Try to look at DCF or PE/10 rather than the next year's earnings.

Specifically on ECA, the one I know, debt is under control and the company is good at hedging. Pretty solid investment here although I'd prefer to add in the 40s.