Comstock has been one of the best natural gas plays in the first six months of '08. Like all other stock with natural gas exposure, it dropped in July and since August, it gained some strength. This stock is just moving like the XNG(Amex Natural Gas Index) but it's a lot more volatile. I know that the goal of this game is to produce the higher risk-adjusted return and this stock is more volatile than the type of stock that would get my portfolio a high sharpe ratio. The stock is volatile but the upside potential of Comstock Resources is just so there and the returns can be very good, so it's on my list no matter the low standard deviation / return ratio. This nat gas stock is just getting the strength it needs to reach higher prices. The OBV is reversing and is heading up, that's bullish to me. There is no real resistance before ~75 and natural gas is actually trading at a discount compared to crude oil. The prices of the energy complex will gain some strength and the natural gas is expected to reduce the discount it's traded at. The XNG is also looking bullish.
$62.45 (08/31/08)
