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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