The natural gas stocks stayed strong as, what I believe, natural gas is making a secular low. But of course low can go lower, so are the equity investors right and the natural gas speculators wrong? The key determinent is commercial users and they are up to their nose in natural gas so it is a fair bet that the equity investors are right in this matter. Of course, the only way to really see is if the market retraces and the natural gas stocks do not or stay strong, relatively, to the oil producers.
Some cheap natural gas companies that I like are currently: ROSE, EP, DPTR, DEJ, POU.TO and the reasons for them are:
Paramount Resources has some interesting deals up north in Canada on Indian land which I believe is yet to be exploited. And I also believe they will be able to claim the land that Northern Sun had before bankruptcy.
Rosetta scooped up all the great resources from Calpine when they went broke in California.
Delta petroleum is Kirk Kerkorian's natural gas play and heavily leveraged. But if you look at the performance of his MGM, maybe lightning will strike twice. And if you noticed, his bet on Ford turned out to be prescient.
El Paso is a large company that will profit immensely on any economic turnaround.
Dejour claims their property is worth multiples of its market cap due to recent purchases surrounding its land.
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