COULD THIS POTENTIALLY BE THE MOST LUCRATIVE WAY TO PLAY NATURAL GAS?
I should qualify the title perhaps? The most lucrative other than futures or discovering a natural gas well in your backyard.
Those of you who have been reading this site for more than a week know my feelings about the natural gas sector and companies associated with it. If you do not, here are a few links to explore:
http://www.zenpenny.com/?p=1175
http://www.zenpenny.com/?p=1193
http://www.zenpenny.com/?p=1112
It's pretty cut and dry in the financial markets. If you're bullish on a commodity nowadays, you can either a) buy a futures contract b) buy a stock related to the underlying commodity c) buy an ETF that reflects trading in the underlying commodity.
The smaller you go in terms of market cap, the more upside potential you have when dealing with a natural gas stock. I presented a research report on my favorite play in the natural gas sector in March. The research report is here, for those who haven't checked it out yet.
As far as ETF's go, there are a few to choose from. I think that perhaps the GAZ offers the most upside potential. This was at one point close to $90 before energy prices collapsed in 2008. It's now trading close to $9 per share and may offer some tremendous upside over the next few years.
click on chart below to enlarge
GAZ (natural gas ETF)
