NGAS

Hi all, i'm pretty surprised a topic has not been started on this stock before. I have read many articles on this recently and i believe the time to buy is now or sometime in the near future. With a higher than expected gas storage update a few weeks ago the outlook seems to be bearish in the short term however as a long term investment this should be a nice stable source of income. Once the supply and demand situation achieves an equilibrium over the next year or so i can see a nice steady rise in NGAS. If we see a further rise in the price of oil i can see a sharp spike in NGAS. The only thing holding me back from buying this stock is the fact that NGAS is traded in US dollars which scares me somewhat due to the current exchange rate (however the GBP has recovered substantially in the last 2 months). If there are an currency experts out there, what is the outlook for the GBP vs USD in the coming year? and should this be a large factor for me when considering buying NGAS?

aveawoo,I post to others quite often within the Aeolia thread in General,on things including ETC's like LNGA and LOIL which are quite similar to NGAS.You are welcome to join us there.

thanks mogo, i'll take you up on that offer when i return to the UK in a few days

aveawoo-still not seen you on Aeolia,must be a long hol. you are having,maybe you are getting so much profit to spend these days lol.Anyway I am still posting mainly on LNGA and some on LOIL which another person here has.I don't see anyone else interested much on this site.Recently I looked at the SNGA charts I use Selftrade charts which are excellent,no need to join for many things there.I used SNGA short gas charts as the plots are easier since LNGA has been flattish for a while.I find that a top was reached on SNGA about mid-June at $133 while recently it has been hovering about the $115 area,a sign of topping out I'd say and we want that one to fall of course.Considering that LNGA is now about $2.50 and was at above $90 last year I regard gas as a future winner.DYOR.I posted about this on General- "shares which will Double" too.Hope to chat sometime to you...cheers mogo.

Higher gas prices came in about March this year,since then there's been not such big further rises,though prices are still staying at a high level.Full gas tanks now everywhere,the number of rigs is way down and gas suppliers are shutting down.It's the rig number whiuch is the key- most production comes from newer fields,it drops about 50% after the first year,no idea why,maybe the pressure falls ? Anyway that makes rig number the main deciding factor.The recession and good summer weather too.Once we get some lessening of the recession,the winter comes, and the effects of fewer rigs comes through, some think early 2010 will be better.Though those tanks need emptied.Some feel that won't take that long if there have been a lot of shutdowns to production plants.As to the $ versus the £ -obviously that affects things, but provided gas prices multiply again several times-they have fallen far more than that-the exchange rate won't be hurting so much then if it's bad.Gas should be a very good investment given patience and provided you get in now while prices are the lowest for many years.

Not sure if anyone is still checking this forum, but i've been reading a few articles and was considering investing in a gas ETF... i'm happy to lock my money in long term (1+ years) but was wondering if anyone with more experience thinks the time is right or not?

investinnit-I sold up my nat.gas at a loss-it wasn't bad looking for months then slow realisation that this is a dangerous one.Why-well they have invented horizontal drilling and fracturing shale beds releasing far more gas so production soared in 2009.Supply is very high even taking into account the bad weather coming now it might be impossible to make much dent in the storage all winter.So summer 2010 will see even earlier filling up of tanks than this record year.The amazing thing is gas companies have not gone burst as yet.I pointed out the fall in overall drilling rigs earlier in posts correctly but actually within that the more effective horizontal ones increased a bit.So most reckon nat.gas longs investing is going nowhere for a year or so.There will be more LNG coming in by ship too.I'd think of shorting nat.gas from about March from a possible peak in prices then once winter ends.SNGA is one ETC.But overall I might just stay out as it's a rather rocky market.Yes the stability of gas firms is the joker card in this.Sorry to be offputting this is all from sites not my own opinion.Yes I lost quite a lot I was amazed when this happened.Though I'm still in plenty else.

Though all the natural gas was sold,I still intend to keep up with it on the net.The best site is the EIA one.There you get what you need-futures prices,supply levels,weather,economic forecasts,etc.At the moment weather is cold in the US which helps usage but stocks though now beginning to be depleted are very high,even a record at this stage.Industrial gas comsumption is low, waiting on any recovery.If I come back in ,it may be a short beginning in the end March.That is the new injection season.It however won't take much to fill storage back up again.Where can that leave producers ? So it's not simple.There will need to be a huge weeding out of producers before any progress can be made.Then there's large amounts of LNG sitting in ships waiting to come in,and I've mentioned already the huge advances in the ability to get previously unobtainable gas out of shale beds in larghe quantities using new technology...