RELATED TICKERS: CHK , ATN , ATPG
There exists significant rational in betting on Natural Gas in world where everyone is talking about clean, green energy solutions making us least dependent on Middle East. Government has committed to bring this change. Business Model is also in favour for such change. Current oil based automobiles or other technologies can be very easily converted to run on Natural Gas just by using costless gas kits which are already there in markets. This experiment has already been very successful in developing countries like India where Government force to run all public transport on CNG (Compressed Natural Gas). US goverment also bringing in several tax benefits for buyers of such vehicles or technologies. Most important, Natural Gas is more efficient and cheaper than oil. Economies of scale will make it even more cheap
Major other reason in favor of such change is current magnificent discoveries of Natural Gas resources and properties within US borders. Research agencies have shown that US wont need import of single barrel of oil for next 40 years atleast if we move to use domestic gas for all our demands. Imagine how much reduction we will see in trade deficit. How much gain will it bring in US dollar currency. Why government wont push such change when everyone knows 60% of US trade deficit comes from Oil imports. Obama has a point and he is very confident that he will be able reduce US debt. Initially I even had tough time understanding how will he reduce debt by increasing spending in stimulus. But now I am 100% confident, tomorrow's energy world will make us completely independent and self sustainable. He is spending few dollars today bringing change which will save us trillions tomorrow.
After lot of research, screening and filtering among around 50 stocks, I found following three Natural Gas stocks showing tremendous potential for growth. All of three have strong fundamentals in terms P/E ratios, EPS and earning growths. All have shown increases in their profits even in the recessionary markets. In current market bounceback they are showing tremendous growth in Momentum. All of three rated 5 star on Motlet FOOL. Last, least risk as they are under tiny amounts of debt.
ATN - Atlas Energy
CHK - Chesapeak Energy
ATPG - ATP oil and gas
I am not giving you their performance numbers nor their strategies or plans to capture market or Gas Shales or properties hold by them. Asking you to do your research on these stocks. Challange me if you find any other better than these in Natural Gas Sector.
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