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Thread: Natural Gas stocks

  1. #1
    God/dess scarlett_vancouver's Avatar
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    Default Natural Gas stocks

    omg, my natural gas stocks are down 30% from when I bought (about 10 months ago). I don't know if I should sit on them and wait (I want to go long term with them), or bail...I mean, if they're never going to recover (as all the local papers are reporting), I should take the money and put it somewhere useful.

    Ugh? Thoughts?

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  2. #2
    God/dess Emily's Avatar
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    Default Re: Natural Gas stocks

    well, if you had the same amount of money that your stocks are worth now in cash, would you put it in this stock?

    that should answer your question.

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    God/dess scarlett_vancouver's Avatar
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    Default Re: Natural Gas stocks

    ^Good call. Yes, I probably would.

    Thank you!

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    Banned Melonie's Avatar
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    Default Re: Natural Gas stocks

    my guess is that natural gas 'royalty' stocks are due for a big upturn after the US fleet attempts to embargo Iranian oil exports at the end of the month (conspiracy theory or what !).

    Like any 'volatile sector' stock, you have to watch all energy stocks like a hawk ... or enter a 'stop loss' order so that they will be automatically sold if the share price declines 10-15 (or whatever percent) below the price you purchased them for. At this point, you're probably better off hanging onto the shares and seeing what happens next, since you've already taken a hammering. Disclaimer - I recently bought back some WTU natural gas royalty shares that I had sold off last may.

    Worst case scenario, you can always dump your natural gas shares at a loss on December 31st, and use the sale as a write-off against taxes due on winning stock trades you made for the year ! In the meantime, keep collecting and cashing those dividend checks.

    In the long term, unless there is a fundamental change in US / Canadian environmental policy re electric generation and industrial fuel use, plus a fundamental change in environmental / national security policy vis a vis LNG port facilities (which would allow the importation of significant amounts of offshore natgas to add to existing north american capacity), north american natgas has nowhere to go but up as long as the economy doesn't tank altogether and kill demand for electricity plus industrial process energy.

    There's also speculation that the more 'baby boomers' near retirement, the less they'll be interested in stocks that produce long term capital gains (like tech stocks) and the more they'll be interested in stocks that produce dividend income (like energy / utility stocks). That's why I always wind up coming back to the gas/oil royalty stocks with their typical 10% dividend payments as long as the energy markets look stable or headed upward !!!
    ~
    Last edited by Melonie; 10-11-2006 at 02:52 PM.

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    Default Re: Natural Gas stocks

    I had SWG stocks on and off for years and my system was simple buy at 18 and sell at 22 ^ and it worked . Also those stocks could go up if the winter is cold and long you just never know. Sounds like you alreadytook the hit like said above so maybe you should ride it out as its really is not a loss until you cash it out .

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    Banned Katrine's Avatar
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    Default Re: Natural Gas stocks

    Hold.

    "Have you ever been to American wedding? Where is the vodka, where's marinated herring?" - GB
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  7. #7
    Sitri
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    Default Re: Natural Gas stocks

    I sold some of my PennWestEnergyTrust PWE when it topped out at 43 a few weeks ago and now I am buying it back at 32. It will go up... and down... and up... but where else are you going to get 11% in monthly dividends watching the roller coaster?

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    Senior Member susan22's Avatar
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    Default Re: Natural Gas stocks

    Early indications are suggesting a warmer than average winter for the US, and shorter term the strengthening USD may prove a headwind to NG.

    Also, while the significant size and straight line character of the recent correction particularly in crude should prompt a bounce in short order the technical damage inflicted is significant. So it is likely to turn out to be just a dead cat bounce with some base building required before a resumption of the uptrend.

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    Senior Member Fan_Dancer's Avatar
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    Default Re: Natural Gas stocks

    Quote Originally Posted by Katrine
    Hold.
    I 100% agree with Katrine and the others who said to hold rather than sell. In fact, if you can afford to take the risk it might not be a bad idea to buy more while it is at discount cost.

    What do you think Kat? Think it would be a worthwhile risk to not just hold but to buy?

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    Default Re: Natural Gas stocks

    I've considered buying...but I'm not knowledgeable enough yet to be comfortable expanding the percentage of my portfolio devoted to one sector...

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