The “Global Warming Gods” are in reverse and you are in for a rude harvest. Attention everyone: very soon it will be cold again and you will die, unless of course you are afforded the luxuries of natural gas heating and a few warm blankets.
You heard it here first: this is going to be the coldest winter since the era of the Wooly Mammoth.
If you are fixated on today’s action, go sell a few stocks for peace of mind and listen to me very quietly. Natural gas prices are “homeless man cheap,” thanks in large part to a supply and demand disconnect. However, do not worry, for the snow Gods will soon even out the playing field, offering an open field of sorts to the lowly natty.
With my money, I want to be long natural gas producers, such as Range Resources Corp. [[RRC]] , Southwestern Energy Company [[SWN]] , Arena Resources, Inc. [[ARD]] , EOG Resources, Inc. [[EOG]] and Chesapeake Energy Corporation [[CHK]] . Furthermore, I want to be long names that supply parts to the snobbish, tight pursed drilling field. Names like Graham Corporation [[GHM]] , Weatherford International Ltd. [[WFT]] , Smith International, Inc. [[SII]] , Dril-Quip, Inc. [[DRQ]], Helmerich & Payne, Inc. Helmerich & Payne, Inc. [[HP]] and even Flotek Industries, Inc. [[FTK]] are of great interest to me.
Ladies and Gentleman of the internets, time has come to prepare whole pantries full of rice and beans, as a new ice age is upon us.
As an aside, [[UNG]] is a bit interesting here too, despite the criminal nature of the ETF organization supporting it.
In short, today is a meaningless day, best suited for men in green leotards and velcro shirts. “The Fly” is busy, so don’t bother asking about any of his positions.
NOTE: I sold out of TriQuint Semiconductor [[TQNT]] @ $8.38, McMoRan Exploration Co. [[MMR]], Align Technology, Inc. [[ALGN]] @ $15.20 @ $8.63 and General Cable Corporation [[BGC]] @ $39.75.
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FIG……..although Cramer does deserve to be affixed to a perpetual pie-in-the-face machine!
here here
I still prefer UNG or even better TSE:GAS as the producers are quite run up already.
Long TSE:GAS already but only a small position
I’m long TSE:GAS as well. Today’s move is looking good.
Why no mention of ECA?
Indeed, A Frigid Winter of Icy Death 2009 Bananza!
http://www.ibankcoin.com/peanut_gallery/index.php/2009/10/12/chill-out-2/
Nat Gas futures (/ng). $100 fluctuations per cent per contract. Buy & hold if you have the balls. I don’t.
“go sell a few stocks for peace of mind and listen to be very quietly.”
listen to me very quietly, perhaps?
Agreed, on all points. My winter outlook from three weeks ago: http://ibankcoin.com/dr_cane/2009/09/29/winter-2009-2010-outlook-chalk-one-up-for-the-farmers-almanac/
Did anybody see the Patriots trash the Titans in the snow this weekend at Foxboro? That’s just a preview of the glory upcoming (for both this winter and the Pats)
Fly…you should hire me. On October 7th, I commented to see if anyone had any thoughts on AMLM. I’m glad I bought it at $1.25 that day….any thoughts?
Mr. Fly,
My sighting of a woolly worm with a large band here in KY this week gives credence to your prognostications….. it’s gonna be a Mother of a cold, ice storm, snowstorm, power outage, kinda winter. Buying snowshoes with $$ saved on lower natural gas/heating bill.
Validation from Mother Nature and the world of Science.
Hey, lookee there.
Real life Kaintucky women.
(They’re all hot, btw).
____
GHM is a fine, but tiny, company. I’ve owned it in the past. They supply good stuff, and, IMO, are best viewed as a play on greater use of sour crude.
However, it does not “supply parts to the snobbish, tight pursed drilling field”.
As for Winter, I haven’t spotted one of those since moving to San Diego. My natural gas consumption is mostly for drying the incredible amounts of laundry generated by youngsters. A well-timed and well-placed blowout or spitup by the 9-month-old can generate an entire load of laundry in an instant.
Ott,
Had no idea you’d moved down to San Diego. Don’t get to check in here as often as I’d like. I’m heading to the Hotel Del this weekend for a friend’s BD party.
Hope the sunny weather is agreeing with you and yours. Shout out to Danny if you ever see him down there.
Where did you think I was, Anton? Does this mean I’m no longer safe?
Been here about 7 years now.
I’ll keep an eye out for Danny, but would only encounter him by pure chance. He wasn’t on the jury I served on this summer, and I was probably more likely to bump into him there than anywhere else I frequent.
Odd. A quarter just rolled through my office door. It qe[0ri9
Ott,
Thought you were in the Bay Area for some reason.
Now go ahead, call it.
Luckily for me, it turned out to be a Canadian quarter. Now that I’ve pocketed it, I can claim to have 20% of my assets diversified out of the $US.
I was in the Bay Area for a long time, but that was over 15 yrs ago.
lol “diversification”
Don’t steal bikes bro!
What about PetroQuest? Despite the name (and RC pimping it with his oil plays), this is predominantely a natural gas play, and it’s one of the most levered to Nat Gas commodity prices. Caught a couple upgrades recently, one in which a price target north of 12 “if Nat Gas prices climb higher than 6.50 this winter”. They’re 5-and-change now, if I recall from the morning workout CNBC viewing.
If the drillers on the Marcellus shale are able to escape the FRACing they’re getting from legislative bodies it will be beneficial for the horizontal players. COG began drilling again yesterday in Eastern PA, hopefully near Philly so I can imbibe the chemicals in the water supply and cause my body to develop antibodies to become even more invincible to viruses than I already am.
The problem is that we’re nearing full capacity on natty at 3.7tcf out of 3.9tcf total storage capacity. A colder than normal winter in the NE (60% possibility last I heard) would help shut down drillers and spur some demand. Right now supply is more available than Tim Knight on a Friday night.
I also remember reading HP rigs were activated in the popular Haynesville, TX area.
net seller here, until PPT gets in 2.20’s
I’m a seller, too. Through trial and error, I’ve worked out a table of answers to the Spam protection questions. I’m selling it for $19.99, or two for $29.99
ROFL.
(“two of them”… double rofl… I’m cryin’ here. Hey just wanted to let you know someone saw it and laughed pretty hard)
_______
Thanks for sharing your reaction and for overlooking my obvious error in pricing.
Given the target market, I should have priced the set of two at $49.99
Flyman, UNG should do great, who cares what the fund owners are like. Get ‘er while the gettin’s good.
The World’s leading climatologist at a conference two weeks ago tells hedge fund managers and gas-men(ie. Fly) there is an abnormal amount of volcanic ash(due to overactivity) in the atmosphere and a weak el nino is setting in…but what does she know? Don’t count on your flight ever being on time this winter or your heating costs going south