Natural Gas: Why I Think It’s a Buy
Dan Schmeidler submits:
I believe that Natural Gas is currently vastly oversold and therefore provides an exceptional buying opportunity for investors. It will be interesting to see how much longer and lower this Nat Gas sell-off can continue in the near-term. Based on moving averages it does look like Nat Gas could be hit by another sharp correction, taking it to $4.00, or even lower. But I don’t think it could stay at these levels for very long. The focus of the most recent Nat Gas sell-off has been clearly based on vast US supply and availability. A look at some late 2009, early 2010, reports from various energy related agencies (domestic and international) reveals a somewhat bearish picture for Nat Gas. Adding to the sell-off are recent remarks from corporate execs that a Nat Gas conversion for vehicles is highly unlikely. And as always, the predominant theme during these sell-offs is the viability factor of Nat Gas, which hovers in the distant future, around the year 2030. But, should Nat Gas really be sold here just because it is NOT going to go quickly back above $10 tomorrow? Interestingly enough, such recent reports are quite in contrast to a May 2009 release of the EIA report on International Energy Outlook for 2009 which is filled with bold and bullish predictions.
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Investing, Long Term Investment, stock market | admin March 15, 2010
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