Time to invest in Natural Gas?
- Thread starter Rose11
- Start date
I am not an expert, but I do keep up on international, national, world affairs, economic news and business news. I have seen no indication that natural gas will increase or decrease in popularity. In the end it will be supply and demand that raises or lowers prices. In general we are in for an economic slow down. Personally I am stepping back from investing as many economist are expecting a market reaction when stock prices will contract to a lower level. I am waiting for this event and evaluating the situation at that time. Many people have left the markets and financial institutions have slowed their participation in the markets.
Trading Energy is where quick riches are at. I know someone who invested in Coal July 2020 and walked away with 30x return in 12-15 months. He obviously retired after making 8 million, but significantly less after taxes. Energy is very volatile, can make you quick rich or quick poor.
I don’t do much fancy investing, but I’m curious how investments in natural gas work.
Do you invest in the company? Wildcat trailers? Futures?
And say I had 10 K to gamble. OK to lose it. But want to go for a long shot with stupid high returns possible. In other words, casino gambling, or a lottery ticket.
How would you go about that?
Do you invest in the company? Wildcat trailers? Futures?
And say I had 10 K to gamble. OK to lose it. But want to go for a long shot with stupid high returns possible. In other words, casino gambling, or a lottery ticket.
How would you go about that?
You play futures on NG prices. If you're into stocks, you can play NG stocks, but need to know which ones. I'm not familiar with this sector, but Energy is where the quick riches are at due to high volatility in Gas prices. You can make a fortune or lose everything, both quickly.
There must be some Energy experts on this board that have NG blue chips to recommend (for long and short plays). I only started researching recently.
There must be some Energy experts on this board that have NG blue chips to recommend (for long and short plays). I only started researching recently.
I personally buy index like DIG in the NYSE or HNU for long gas under the TSX.
DIG has done well but HNU looks like the fund managers have gotten everything wrong. Down from $40 in June to under $2.00 today. Thanks for the thought though.
Cheniere and NGT in the US.
Tourmaline, Arc, Advantage and Spartan Delta in Canada. Kelt more speculative. All four in first sentence I am looking at potential 50 to 100 percent returns over next 12-15 months. Most have low debt and cash flow is steadily increasing even with lower gas prices. Tourmaline is a great long term hold as it is a North American leader and will see even better results in 2024 when west coast LNG facilities start shipping liquified natural gas. Arc will benefit too. Spartan is a takeout candidate this year, in my humble opinion.
Gas is extremely cyclical. At lower prices the higher cost producers shut down their wells, which reduces supply and prices rise. Once prices rise significantly, high coat producers can start producing gas again, which increases supply and reduces prices. Weather plays a role too. In recent months, weather has been warmer than normal globally, and supplies rose. That will correct itself in medium term (6 to 12 months).
Tourmaline, Arc, Advantage and Spartan Delta in Canada. Kelt more speculative. All four in first sentence I am looking at potential 50 to 100 percent returns over next 12-15 months. Most have low debt and cash flow is steadily increasing even with lower gas prices. Tourmaline is a great long term hold as it is a North American leader and will see even better results in 2024 when west coast LNG facilities start shipping liquified natural gas. Arc will benefit too. Spartan is a takeout candidate this year, in my humble opinion.
Gas is extremely cyclical. At lower prices the higher cost producers shut down their wells, which reduces supply and prices rise. Once prices rise significantly, high coat producers can start producing gas again, which increases supply and reduces prices. Weather plays a role too. In recent months, weather has been warmer than normal globally, and supplies rose. That will correct itself in medium term (6 to 12 months).
Keep an eye out on VET, BTE, CPG, ATH. Proceed with Caution! These motherfuckers made me 400% since Sept 2020.
**Not a financial advisor**
**Not a financial advisor**
