Beaten Down Natural Gas Likely to Stay Down, Making Producers a Short [View article]
I'd say I would not bet against the mgmtsof XTO or CHK. I am sure as hell that they know more about the NG market than I do and that they can spot the trends faster and better than I ever could. There may be money to be made on the short side of some NG producers but frankly, I don't like the odds and the risk-reward ratio. I think it will be much more profitable to keep an eye on the best managed, low-cost producers and gradually scale into those - above all MCF, followed by CHK and XTO. CHK's convertible preferreds (D) look like a decent play in this regard - paying you to wait and giving you an additional margin of safety versus the common.
Beaten Down Natural Gas Likely to Stay Down, Making Producers a Short [View article]
There may be money to be made on the short side of some NG producers but frankly, I don't like the odds and the risk-reward ratio.
I think it will be much more profitable to keep an eye on the best managed, low-cost producers and gradually scale into those - above all MCF, followed by CHK and XTO. CHK's convertible preferreds (D) look like a decent play in this regard - paying you to wait and giving you an additional margin of safety versus the common.