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Cramer on BloggingStocks: Lots of ways to play sturdiness in natural gas |
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| Nov 25, 2008 02:50 PM UTC |
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Tracked Blogger
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Via BloggingStocks:
Filed under: Market matters, Chesapeake Energy (CHK), BP p.l.c. ADS (BP), Anadarko Petroleum (APC), Commodities, Oil, Stocks to Buy, Cramer on BloggingStocks TheStreet.com's Jim Cramer says if the commodity were going to fall further, it would have done so by now. Has natural gas hit bottom? One thing that has endlessly plagued this market is the belief that there is no bottom to oil or natural gas. I think that we are seeing some stickiness in oil in the $50s. I am looking for that to be challenged and held today and tomorrow when inventories are broadcast. But more important, I think there is a place where natural gas is having trouble going down now because it is too cold. We are in the season where natural gas should have fallen more before it got here, because without some sort of unseasonably warm snap, we will now believe that nat gas is permanently above $5 and change, where a whole host of prudent companies, like Equitable (NYSE: EQT) (Cramer's Take) for yield and Ultra (NYSE: UPL) (Cramer's Take) for growth, make a lot of money. We have more than a couple of ways to play this. Equitable has a decent dividend, one of the rare natural gas E&P companies with one of those. Equitable's finding costs are less than half the current pricing. The conservatives can play it with the Chesapeake (NYSE: CHK) (Cramer's Take) preferred; nice upside while you wait. Another way is Anadarko Pete (NYSE: APC) (Cramer's Take), run by industry stalwart Jim Hackett, who came on "Mad Money" recently and said that his company's oil and gas mixture is equal to about $10 a barrel but the stock is only at $37, and I suspect that it could go back to its $35 price if the oil futures stay this gloomy. Continue reading Cramer on BloggingStocks: Lots of ways to play sturdiness in natural gas Cramer on BloggingStocks: Lots of ways to play sturdiness in natural gas originally appeared on BloggingStocks on Tue, 25 Nov 2008 09:50:00 EST. Please see our terms for use of feeds. Permalink | Email this | Comments
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