This is a real bottom, not one of the head fake’s we’ve witnessed over the past 5 years.
We are seeing significant drawdowns in supply (the most in 20 years) and more importantly, the rig count is down 58% from 2010. In other words, supply is being dried out at a time when wells are shut in. Should we get a few supply disruptions this summer, the price of natty can spike higher.
The direct beneficiaries are companies who desperately need higher prices, like CHK, GMXR, KWK, UPL, ECA, SFY and CWEI. There are others and the sector is ripe for speculation.
In other news, Blackstone borrowed another $2.1 billion to buy more residential real estate. I’m telling you now, as I’ve told you for months, housing has bottomed and prices are going up–big time.
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Might you take another look at coal stocks with NG bottoming?
no
NG has to get to like $12 bucks before it makes economic sense for power providers to really switch back to coal. The liabilities attached to it are simply to big.
XCO?
FCG looks good. I thought you sold BX too early, sometimes I feel like you overtrade and don’t let your winners run. I’m still long KKR, DECK, SHLD and fricken kickign myself over not buying VMW when it tanked on earnings. I checked insider buying and saw EMC buying hand over fist. My partner, Mr. Partridge, will tell you I had it on my watch list. Oh well…
I thought CHK is was shell of a company run by crooks
lol CHK
http://dealbreaker.com/?s=chesapeake
Fly, thanks for the “BN” offer. I’ll take a pass.
Take what you like.
I thought we had infinite amounts of natural gas that could be fracked – CHEAPLY.
So what do you mean by “bottoming”?
Wells are shut in
Nat gas has high correlation to price of power. If it has bottomed maybe look for deregulated utilities with large percentage of the power plants producing via Nuuukular (lots of GWB)
That’s the worst stock I’ve ever seen in my life
My apologies, I thought this was the post about BV.
Wait for pullback on BX? Assuming it happens…
BAS
Nat Gas has bottomed. Listen to the call from HEK. People need to stop using rig count as a valid metric for growth, just pure ignorance.
Is it a typo? HEK is a waste company, albeit the chart looks good.
HEK hauls water for fracking
Great summary. I’ve been burned trying to catch this bottom several times. May have to plug my nose and try one more time.
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