Here's a question from RC;
What do you think of NG plays? I like CHK, and the insider buying has been tremendous.- RC
I don't find this strange at all, but Wall Street touted natural gas stocks in the late summer and early fall as prices were peaking. Undoubtedly, many investors bought into this hype, hook, line & sinker.
Of course, the fall in natural gas prices is being blamed on a warmer the expected winter. In reality, natural gas prices got way ahead of themselves
I think that prudent investors who want to participate in the energy sector should own companies that participate in every aspect of the energy markets (integrateds, refining, & oil service).
Pure natural gas plays tend to be hit or miss situations. I have no idea where natural gas prices are going from here. The group has taken a big after reaching its highs in Oct-Nov (11.91/ up 67.8%, now 7.88). The group had essentially given back most of its gains.
If someone wanted to invest in pure play natural gas stocks, today's price are much more attractive than a few months ago.
