logo
  Join        Login             Stock Quote

Why I Like Smaller Natural Gas Stocks Right Now …

 March 19, 2012 01:11 PM
 


U.S. natural gas prices are currently trading near ten-year lows. And while most investors think that makes natural gas stocks a bad bet right now, they couldn't be more wrong!

In fact, along with select small-cap oil companies, I believe smaller natural gas companies are a screaming buy right now.

For starters, I expect natural gas prices to rebound from here — in oil terms, the commodity is trading at just $14 a barrel right now!

But what's more important to understand is that there is a world of difference between the underlying commodity and the companies that are involved with producing it, transporting it, and finding new ways to capitalize on its current affordability.

[Related -Boost Your Dividend Yield]

Foreign investors and governments certainly recognize this! That's why they're not waiting around — they're already pouring money into the American oil & gas industry hand over fist — spending more than $37 billion just in the third quarter of last year alone!

They're funding every new project they can get their hands on. They're looking to lock down supplies of cheap, America oil and gas for decades to come. And they're snatching up every promising small energy company they can find.

This flood of foreign cash is already driving some lesser-known energy investments through the roof, and it's even spilling over into neighboring Canada … where — since 2009 — China's state-owned oil companies have invested $16 billion in new forms of fuel like shale oil and gas.

This is the real, concrete proof of the "New Fuel Revolution" I've been telling you so much about lately.

Advertisement

[Related -Chevron (CVX): The Second Biggest Oil Seeker Joins The Dividend Yield Passive Income Portfolio]

Okay, But Why Favor SMALLER Energy Stocks Specifically?

Well first off, countries like China aren't putting their money in "big oil" companies like Exxon or BP. Instead, they're investing billions of dollars in small-cap natural gas companies that have decades of profit potential.

These companies are on the cutting edge in terms of technologies and new techniques … just as it's always been the smaller Internet companies that redefine our experience of the Web.

And with billions in fresh investment from foreign countries, these eager little companies are poised to make the very most out of a transition in global energy standards.

Plus, from our perspective as investors, it doesn't take much to move smaller stocks. In fact, a single new innovation or just one new discovery could send a small cap soaring!

Alon U.S. Energy Partners is a great example of what I'm talking about.


Next Page >>123
iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageSector Detector: Bulls Go Down Swinging, Refusing To Give Up Much Ground

Although the stock market displayed weakness last week as I suggested it would, bulls aren’t going down read on...

article imageThe Bumpy Road Ahead To Policy Normalization

When the dust clears from tomorrow’s Fed announcement, the crowd’s expecting that the slow but persistent read on...

article imageAnalyzing Performance Histories That Might Have Been

The trend in recent years of securitizing more of the world’s market betas offers investors, in theory, read on...

article imageBig Prints in VIX Calls

The CBOE Vix Index is in positive territory on Friday morning as shares in the S&P 500 Index move slightly read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.