Is it time to invest in Natural gas now?
- Thread starter pro123
- Start date
Buy GAS if you are cool to the Futures contracts
http://www.claymoreinvestments.ca/en/etf/fund/gas
Another option is starting to establish holdings on Encana (ECA), you get paid while you wait.
Or if you have tonnes of USD cash, you could try Chesapeake Energy (CHK)
http://www.claymoreinvestments.ca/en/etf/fund/gas
Another option is starting to establish holdings on Encana (ECA), you get paid while you wait.
Or if you have tonnes of USD cash, you could try Chesapeake Energy (CHK)
I would not touch any sort of gas play. The reason prices are so low is that shale gas is coming onstream in massive quantities. It will have to be a brutal winter in order to make even a dent in what is available right now and any upsurge in prices will only incent producers to bring more onstream.
LOL, do you mean recent?
These are all very legit reason not to invest in natural gas but keep in mind that the risk reward is pretty favorable right now IMHO.
Again as mentioned I would put spare money (say money saved from hobbying) on big cap natural gas company and collect the dividends while I wait. You never know the catalyst for policy changes and thus incentives favorable to natural gas in North America could be just around the corner.
BTW, I have a feeling LNG will bear fruit soon, as Asia, China in particular is going to invest big on shale gas technology and develop related infrastructures to import natural gas other than those from Russia via Kazakhstan as part of the "clean energy" economy, say after 2012.
I think that if you're waiting for policy changes that are not even hinted at at the moment then you're a) wasting your time and b) gambling. There's no incentive for North American governments to raise natural gas prices. If you can find a large cap nat gas company with good dividends go for it but I wouldn't expect to see their stock price move much.
As for LNG and Asia, who knows? I do know that I put some funds in Cameco earlier this year because nuclear energy is going to be a big factor in Asia. Up about 20%+ so far.
As for LNG and Asia, who knows? I do know that I put some funds in Cameco earlier this year because nuclear energy is going to be a big factor in Asia. Up about 20%+ so far.
LOL, tax sheltered or no?
Best deal/steal would be CCO shares in TFSA when you do not need to declare, let alone pay for the capital gain and more importantly should you transfer the gains out of the account, those are truly tax free, not part of the regular income.
No luck when CCO shares in question are in RRSP/RRIF.
The only downside from TFSA? You could only invest at most $10K (2x$5K max annual contribution room since 2009).
Wish I knew. But I think this is the "winter high". If so we could see a 2 handle on prices again. If that happens you don't want to have leveraged long ETF exposure. Believe me, I know. Your $5.80 could be $.80 pretty fast.
HNU is a BAD BAD BAD way to invest in natural gas... TERRIBLE!!! GET OUT NOW!!! If you want to really invest in NG itself, you are MUCH better off to buy the actual futures maybe 2-3 months out and roll them. If gas prices stay the same HNU will lose about 8-12% PER MONTH...
you can buy them through interactive brokers. I have made money on HNU once as well, but if you watch it over time you will realize you were lucky... for any length of time it is really terrible. Just to illustrate, when I sold this stock less then one year ago it's pre split value would have been 16.05....... so if I had held since then.....
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You are absolutely right! I just read this article about ETF. I consider myself lucky this time.
http://www.theglobeandmail.com/glob...ble-with-leveraged-etfs/article1212916/page3/
even worse....just do the futures. When they rise they soar...but more often the PLUNGE!!!
Futures are defiantly not for everyone.
If they move against you, the losses can mount up quickly.
If you use the leverage thats available, you can get absolutely hammered
I believe there are some newer ways of playing the futures market,which I think do not require huge cash reserves or leverage.
But if you do not understand this market very well, it can be quite painful
I've been selling bull put spreads on Encana for awhile now. Recently started a condor spread strategy on same. Encana's chart has got to be one of the most beautiful basing patterns I've seen in a long time. I really don't see how natgas can move in the near future.
BTW, if any of you would like to own Encana, the better to do that right now might be to simply sell naked puts on it. They are somewhat cheap, but doing so gives you the ablity to generate income while occasionally delivering the stock that you want to buy anyway at a more reasonable price.
BTW, if any of you would like to own Encana, the better to do that right now might be to simply sell naked puts on it. They are somewhat cheap, but doing so gives you the ablity to generate income while occasionally delivering the stock that you want to buy anyway at a more reasonable price.
Looks like instead of paying top dollar to be the undisputed POThead (Brad Wall is for sure aspired to be the one) in the Banana Republic when it comes to politics and regulations, the Aussies place their bet on CHK, right after CNOOC/CEO from mainland China.
Not going to be surprised ECA felt the envy and yelled the ibankers from the Bay Street who suggested 50/50 split in 2009.
Not going to be surprised ECA felt the envy and yelled the ibankers from the Bay Street who suggested 50/50 split in 2009.
