Natural gas prices are dropping like a rock today, but the bearishness is not preventing a few bulls from taking million-dollar stands. As winter approaches, things are going to get very interesting.
You might call them “free-form” merchants. They did a little bit of everything, as opportunities presented themselves. In the 18th century, you could find such merchants in seaports up and down the East Coast, from Boston to Charleston. Such a merchant might arrange voyages to Africa or the Far East – hire a captain, underwrite the insurance and divvy up the profits. He might deal in shares of land companies or bonds. He might lend money, trade grains, sell lottery tickets – whatever. These merchants were not committed to a single business. They would go where the best of it looked to be. They were opportunists in the best sense of the word.
If you know how to play the volatile nature of the commodity sector, this article is not for you. Lee Lowell of the Smart Profits Report gives three reasons why commodity investing has changed for the better, and how to profit from them.
Natural gas could have a bright future as a clean and cheap alternative to fossil fuels in the auto industry, says David Fessler. Government efforts to promote the use of autos powered on natural gas could see gas production soar in the coming years. David says investors can play this ‘gas game’ with these six major producers and distributors.
Some of the valuations in today’s market are absurd, says Chris Mayer. Though market volatility means high risks in the short-term, now is the time to “plant the seeds of monster future returns.” Chris picks four deep value stocks with big upside potential.
“It was the best of times, it was the worst of times.” Justice Litle thinks Dickens’ classic line provides an apt description of today’s markets. Sure, this year has been hell. But it has also created some amazing opportunities for contrarian investors. Justice says this is most apparent in the oil and natural gas market, where irrational risk aversion has made most people forget the fundamentals.
Energy investors may find themselves at odds in weighing whether to put their money into fossil fuels or green alternatives. Two separate articles in today’s Wall Street Journal provide a good backdrop for the current dilemma. Ultimately, we’re of the opinion that it’s still too early for alternative energy to make a convincing business case.
Energy prices continue to tumble on recession fears and a US dollar rally. For investors that are long-term bullish on energy markets, this represents a great buying opportunity, says Andrew Snyder. He expects coal producers like Massey (NYSE:MEE), Peabody (NYSE:BTU) and James River Coal (NYSE:JRCC) to see big increases in their valuations in the coming year.
The election last night of Barack Obama to the White House has many green investors cheering, but their elation may be short-lived. For one, the ROI of alternative energy is still pegged to the price of fossil fuels. Second, environmentalists may find themselves at cross-purposes with one faction leading the charge for a greener grid while the other seeks to protect endangered species and offshore territory from solar arrays and wind farms.
T-3 Energy Services (NASDAQ:TTES) provides essential safety equipment for oil and gas rigs. Though drilling activity has been affected by the fall in commodity prices, Chris Mayer says the stock has been massively oversold. Today it is trading at $19, down from a high of $84 last year. Given its healthy cash flow and strong international growth outlook, Chris says a move back to $60 is on the cards.