I upped my stake in BAS for a couple percent into the selloff, for $26.52. It’s probably early and I expect we’ll see a further dip, but what does it matter, in the grand scheme of things?
What else are you going to buy? Some of those fancy tech stocks?
Just start loading up on natural gas plays now and save yourself the heartache and pretending like you did, later.
If you enjoy the content at iBankCoin, please follow us on Twitter
Any thoughts on ECA – one of my favorite natty plays
I have a thought – I hate reading Canadian 40F filings
Just a quick brush through ECA’s annual report, they look like they’re of the same type as BAS. I see a lot of the same elements that drew me to BAS.
Very fast look here, I’m talking about 5 minutes. But I do notice they took some massive write offs last year and I’d probably want to know why.
The company has a good chunk of depreciation costs that are keeping their official reporting as taking a loss, and that reminds me of BAS. My suspicion is that those capital expenditures are going to come in as fracking takes off and natural gas takes an increasing share of US power generation.
I’d say if you believe in the fracking thesis, just make sure the company has adequate access to financing and some follow up on those key questions about why they took such a massive loss recently. Probably just opportunistic write downs in a bad market but you definitely want to make sure there aren’t sketchy record keeping practices that might still be at play.
I believe the losses were the write downs but I would have to refer to my notes to refresh my memory, which I unfortunately do not have access to at work. As always, thank you for your opinion.