Tumbling Natural Gas Prices Spark Contrarian Investments
 
Sep 21, 2006 - PR Newswire
 

www.dailyreckoning.com:

BALTIMORE, Sept. 21 /PRNewswire/ -- Unusually low natural gas prices have recently crippled prominent hedge funds, most notably Amaranth, which may have lost up to $5 billion. Short-playing investors also sustained significant losses when natural gas prices plummeted to a two-year low of $4.892 per thousand cubic feet. As countless traders race to the exits, one expert is maintaining an optimistic outlook for this volatile fuel.

 

"The long-term story of natural gas is as bullish as any other fossil fuel," said Justice Litle, editor of the acclaimed financial advisory newsletter "Outstanding Investments." "Natural gas has been driven down by bearish sentiment in the short to intermediate term," said Litle today in the October issue of "Outstanding Investments," "but it won't take much for this pessimistic picture to turn on a dime."

 

Natural gas' recent slump has been mostly attributed to last year's very mild winter and the unusually high levels of current U.S. gas reserves - nearly 3 trillion cubic feet. However, Litle insists that many investors fail to realize that demand for this precious fuel has continued to rise, despite the latest conditions. According to the U.S. Energy Information Administration, gas consumption will increase by more than 20% over the next few decades. To make matters worse, domestic natural gas production rates have practically flat lined, annualizing 1% growth over the last 10 years. The big picture for natural gas, Litle asserted, is resoundingly bullish.

 

 

Even in the short term, Litle suggested that a simple climate fluctuation could send natural gas prices soaring. "A nasty winter, or even just a normal one, could affect things greatly," said Litle. A bitter winter, as predicted this year by The Farmers Almanac, or a late season hurricane could easily stir up prices and, according to Litle, "The way natural gas moves, the whole picture could change overnight."

 

In this month's edition of "Outstanding Investments," Litle recommended a stock to his readers that stands to gain from a natural gas bull market. "Now that all the big funds have blown themselves up, we should scoop up solid players while the chips are down."

 

Justice Litle, editor of "Outstanding Investments" and contributing editor to "The Daily Reckoning," has implemented sophisticated trading and hedging strategies for clients on a global scale - a broad cross section including soybean farmers, cattle ranchers, currency hedgers, energy consultants, scrap metal dealers and everything in between. He has worked with hedge funds, traded equities for a private partnership, and written multiple articles for highly respected news sources.

 

A product of Agora Financial, "The Daily Reckoning" is written by New York Times best-selling authors Bill Bonner and Addison Wiggin. "The Daily Reckoning" is a daily, free e-letter that weaves information about the financial world, investing, and everyday life into an educational and entertaining format that has been engaging readers for over seven years.

 

Please direct booking inquires for Mr. Litle to imathias@agorafinancial.com or 410-864-1652.

 

SOURCE http://www.dailyreckoning.com

 

 


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