Natural Gas- NGAS

[gferrets]

While this stock has been getting pummeled recently, anyone think it looks like a good buy down here at this level? I'm looking to pick some up soon. I'm just trying to look out a year from now, and see if this stock will be a 5 dollar stock. I don't think it will, it should be higher. Looks like a good long term hold to me.

[madcowdisease]

While this stock has been getting pummeled recently, anyone think it looks like a good buy down here at this level? I'm looking to pick some up soon. I'm just trying to look out a year from now, and see if this stock will be a 5 dollar stock. I don't think it will, it should be higher. Looks like a good long term hold to me.

NGAS has gotten a lot of traffic on these boards due to the inherent nature of the users being traders. A low dollar stock is always more favorable than a high dollar stock, all else being equal, since it takes less to move it .

However, NGAS is not the best company in this space. Therefore, if you are looking for a good natural gas holding try the best-of-breed companies to limit your risk. CHK is likely tops in this arena. I like EOG with a recent large find and to a lesser extent BBG (though BBG is in the mid-cap sweetspot). All of these should be considered higher quality holdings on a longterm basis.

To directly answer your question about NGAS not being a $5 stock a year from now, I am not sure. It depends where you think commodities are going. This was a $5 stock until the energy spike that began with hurricanes Katrina and Rita and the subsequent commodity spike starting the following year in 2006.

There is a growing cohort that believes global growth will slow and technology and conservation could put a damper on the energy bull market. It's not inconceivable NGAS could be $5 this time next year. But I think you'll see spikes along the way so perhaps it is a decent trade.

[madcowdisease]

Don't follow NGAS much but with a 30+% move today it popped up on my radar. Anyone know what's up?

[Screwball]

Don't follow NGAS much but with a 30+% move today it popped up on my radar. Anyone know what's up?

Same with some of the coal names. I looked at the gubments EIA coal and nat gas reports and I don't see any reason for these to take off. Doesn't seem to be any more production in coal and nat gas is at 3.546 on the NYMEX right now. It did ramp up Friday from 3.37 to 3.60 then pulled back some.

From the nat gas report on Thursday it seems we are swimming in nat gas. Oil as well. Could it be the power plants gearing up for the summer electricity usage? I'm a rookie at this stuff so maybe some of the more experienced traders can shed some light on this.

[aiki14]

While I trade in the energy space extensively I have always shied away from Nat Gas plays as the market is so unpredictable on just about every timeframe that I could never get a reliable risk reward profile to trade off of.
I guess you could take a look at these guys for technical trades, and perhaps as MCD has said you could pick a "best of breed" in the space for a long term hold. Personally I like just about every other sector in the energy complex better for trading and buy and hold.

[mo_dingo]

Was the news about finding a ton of reserves in the south responsible for the jump?

http://online.wsj.com/article/SB124104549891270585.html

Just a thought

[madcowdisease]

Was the news about finding a ton of reserves in the south responsible for the jump?

http://online.wsj.com/article/SB124104549891270585.html

Just a thought

Perhaps but other energy names in the oil and coal sectors are up as well too. For the most part names like BBG, EOG, and CHK, with larger footprints in this new find, track close to eachother on the charts. Even names like ACI and BTU follow a similar path with nothing to do with Louisiana gas fields. Then there's NGAS which leaves them all in the dust. If this is the cause for the spike I'm not yet convinced, based on my rudimentary research, that the move is warranted.

[madcowdisease]

Market gave a nice entry into NGAS this morning. Lightened up as the rally stalled but still holding some for more.

[madcowdisease]

Crushed by dilution! Ah, I hate secondaries.