Despite the market weakness, natural gas futures continue marching steadily higher. Considering the above average warm weather in most of the country (first cold wave seems ready to set in this week), and it would seem that the shortage of storage space has been worked through in one way or another.
This was the very thing I was interested in betting on when I took a position in BAS. I was too afraid to bet directly on the price of natural gas for fear that this warm weather would be the stake driven through the heart of natural gas.
If prices continue to shore up, it will become increasingly more feasible to drill for natural gas again. Accordingly, I expect activity to pick up in the fracking services – weakness in fracking was the primary driver behind BAS’ most recent earnings trouble.
I remain unconvinced on the need for panic. But every day we do not rally herds us closer to a wash out. It has been too long since we had a flood of fear drowning us. My intention is to sit on my 20% cash position and watch things closely, rather than give in to that same that has hindered us for so long.
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Stay with high quality names right now.Fuck all the others.APA is
having a fire sell.RIG is worth a
look too. I will jump on APA tomorrow if drops!
I don’t disagree necessarily – but BAS has structured their debt so they don’t have any principal payments until 2019. And they have a boatload of cash for what they are.
I just see them as having lots of time to get their act together and take advantage of the North American energy revolution
They also have shorty all over dat
ass.Land drillers/services will
continue to suffer.We seen this
shit before.Off Shore Drillers
should outperform the pack & lead the way back up.Thats where you want to be.imo Sell them after they move up then buy the laggards like “BAS”.
just me two cents,bro