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Bobwins

10/07/05 10:05 AM

#24857 RE: lentinman #24827

wade....I mean Lentinman I understand your point. The market will do what it wants to do. I can't always anticipate the move within the move within the move.

That's why I try to find profitable stocks with good fundamentals and low p/e. In this particular case, all my talk of mmcfpd, reserves, Peak Oil, LNG,etc. may have camouflaged my efforts. But my target remains the same.

I am attempting to find stocks where the market has underestimated earnings. I believe that NG is more than a one time event based on the hurricanes. I think there will be ongoing incremental earnings growth going forward. That should elicit a positive stock price reaction over time.

In this case, I believe that NG will continue to surprise to the upside over time. Even flat or declining prices are ok for periods of time if my choice of exploration companies is solid and they find more gas than they produce and continue to increase production. Just like any industry, they need to continue to increase revs over time.

Sticking with my guns for the near term until proven wrong. Granted, I will have to wait until the depths of winter to see if I'm right. I am willing to take that risk. I think NG stocks have good chances for positive earnings news and better chances than many/most other industries.

Bobwins
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cliffvb

10/07/05 11:51 AM

#24881 RE: lentinman #24827

NG prices: A look at NG futures over the next year shows a peak in price of $14.14 in the Jan 06 contract (vs 13.31 for nov05 futures). The price drops substantially to 10.11 in April 06 (end of winter) and then stays in that 10-11 range through the rest of the year. That is what the market is saying and I don't disagree with it although a cold winter could send prices berserk. At $10, the NG companies will be making oodles of money, at least the ones who aren't collared in at low prices.

http://futures.tradingcharts.com/marketquotes/NG.html