Seeking Alpha

Chris Matuszewski

Chris Matuszewski
Send Message
View as an RSS Feed
View Chris Matuszewski's Comments BY TICKER:
Latest  |  Highest rated
  • Apple, Cirrus Logic rally after iPhone/iPad supplier reports strong sales [View news story]
    Might have something to do with CHL not setting a price for pre-sale orders? I read this in an article a few days ago.
    Jan 13, 2014. 02:25 PM | 4 Likes Like |Link to Comment
  • Natural Gas ETF Jumps on No News - Turning Point? [View article]
    I question some of futurestrader's analysis about UNG.

    First of all, since it is a partnership and it passes on income and capital gains/losses directly to the shareholder, you would get all the same tax advantages as you would if you were to buy the futures contract. The 1256 Contract discussed is the very same 60/40 split mentioned for long/short term capital gains. For this reason, there is no need for them to issue distributions. UNG has no income revenue to speak of. It is all about capital appreciation of the underlying futures contracts.

    I highly doubt that an investor in UNG would lose money due to the fact that natural gas is in contango. It makes more sense to me that when rolling over to the next contract UNG would buy the same dollar amount worth of contracts instead of buying the same number of contracts.

    I think that for the average investor, or the small investor, it is better to use UNG rather than trade the futures contracts directly. UNG will charge a nominal fee to manage the buying and selling of these contracts for you. Plus, they make it easier to scale into and out of a position without worrying about the actual contract size increments. Best of all, almost every investor already has access to trade UNG on the NYSE.

    I would recommend buying UNG or the Natural Gas futures contract now because it is currently at a relatively low price, and we are seeing the beginning signs of an economic recovery. I think there is still risk of a prolonged recovery period, but I wouldn't want to miss out on this rally when it happens. Plus, the long-term demand for Natural Gas looks very promising.


    On May 12 10:38 AM futurestrader wrote:

    > A couple of things to remember when trading UNG: I actively day traded
    > this since its inception, until last year when I truly understood
    > all the details of the fund. Here are a few things to keep in mind:
    >
    >
    > 1.) UNG is a publicly traded partnership and you will receive a K-1,
    > meaning you will pay taxes on your share of their revenue. Typically
    > these types of funds will pay distributions, so no big deal right?
    > This fund for some reason does not pay distributions, so you basically
    > will pay taxes on 1256 contract income while not receiving a penny...
    May 12, 2009. 04:41 PM | 2 Likes Like |Link to Comment
COMMENTS STATS
2 Comments
6 Likes