Have you seen the pirate movie- Pirates of the Caribbean- At World's End?
In the movie, Jack Sparrow, the main pirate character in the movie, has been rescued from Davy Jones Locker by his pirate crew only to find himself stuck somewhere between the land of the dead and the living. The crew (including Jack) only means of getting back to the land of the living is by figuring out the cryptic clues provided by an ancient Chinese chart of maps. Well they figured out alright-how to get back, by deciphering a clue where 'up was down' and down was up'.
Like the market right now- 'up is down' and 'down is up'. Hah, hah. I am serious though. The market really sucks? I seem to be losing money in certain oil and gas stocks even though oil has been climbing to new highs daily. I am like what the heck. Yes, it seems like I am always losing lots of money in the market, but sometimes blue-chip investments touted as safe sometimes can be really just as unsafe. My thoughts are- even if the stocks of the oil and gas companies that I own in my portfolio were trading at ridiculously high PE ratios, by virtue of oil being above $100 for so long, my oil and gas stock should be trading at a thousand percent higher. I should be rich and well off- vacationing on the beaches of Monte-Carlo. NO-o-o! Instead, I am barely afloat- having to liquidate most if not all of my portfolio to stay alive.
This stinks--phooey! Maybe I will just ask Dick Grasso, for a cash investment. I promise, I will use it wisely- no sub-prime loans for me. Well, If you are still persistent and believe in democracy, capitalism and the 'invisible hand of the markets' then I have a stock for you. I have been tracking a utility stock for some time now and its doing fantastic. Its was up 25% in over 2 months from our tracking purchase price and it even pays a decent dividend.
Name of Company:Nicor
Stock Symbol: GAS
Sector: Utilities
Sub-Sector: Electric Utilities
Yield: 4.6%
Closing Price as of 07/11/2007: $40.21
==============================================
Company's description: Nicor is a holding company. Gas distribution is Nicor's primary business. Nicor subsidiaries include Nicor Gas, a distributor of natural gas, and Tropical Shipping, a transporter of containerized freight in the Bahamas and the Caribbean region. Nicor also owns several energy related ventures, including Nicor Services, Nicor Solutions, and Nicor Advanced Energy, which provides energy related products and services to retail markets, and Nicor Enerchange, a wholesale natural gas marketing company. Nicor Gas maintains franchise agreements with most of the communities it serves, allowing it to construct, operate and maintain distribution facilities in those communities. Customers have the option of purchasing their own natural gas supplies, with delivery of the gas by Nicor Gas. The larger of these transportation customers also have the options of including the use of Nicor Gas storage system and the ability to choose varying supply backup levels.
Why should you buy this stock? Besides having a dividend yield of almost 5%, this stock have performed relatively well in this market. It's 52 week stock price is only off by 7% for the year. I see this stock as a natural gas play unburdened by the high cost of capital expenditures-particularly labor cost that many natural gas producers have to make in order to stay competitive, in addition according to the EIA although the price of natural gas is currently at very high levels, it is expected to increase further by the end of year and into 2009. At least for the short-term, "the natural gas spot price at the Henry Hub averaged $7.17 per thousand cubic feet (Mcf) in2007, and is expected to average $11.86 per Mcf in 2008 and $11.62 per Mcf in 2009. In June 2008, the average Henry Hub spot price was $13.07 per Mcf, increasing by $1.42 per Mcf over the May level. " The reasons for the continual prices increase: significant cost increases in onshore production, high oil prices, low liquefied natural gas imports. I believe these trends will continue throughout the rest of the year and Nicor will continue to benefit from the increases, however stock price levels could come crasing down to earth as supply levels continue to build and if the US has a very mild winter.Options
Calls: Oct 16 2008 Calls w/ Strike Price of $40- GASHH Bid:$2.05 Ask: $2.20
Puts: Oct 16 2008 Puts w/Strike Price of $45- GASTI Bid:$4.20 Ask:$4.60
Want to get into the stock market don't know how? Want to start slow or need an alternative to your broker? Try the easy Sharebuilder program and Buy Stocks for $4 per share. Need investment ideas? Call or email.
====================================================
The editorial content on this blog is written as a service to clients of UCS Investment Co. You should seek professional advice before implementing any of the strategies discussed herein, since: (1) The strategies are general in nature and will not apply to every situation; (2) Other opportunities may be better suited to your particular needs; and (3) The rules and regulations are constantly changing. Third party content such as Standard and Poor's, is a trademark of the Standard and Poor's company. We are not in any way affiliated with this company, nor do we receive any compensation from any companies for publishing these reports and recommendations.
In the movie, Jack Sparrow, the main pirate character in the movie, has been rescued from Davy Jones Locker by his pirate crew only to find himself stuck somewhere between the land of the dead and the living. The crew (including Jack) only means of getting back to the land of the living is by figuring out the cryptic clues provided by an ancient Chinese chart of maps. Well they figured out alright-how to get back, by deciphering a clue where 'up was down' and down was up'.
Like the market right now- 'up is down' and 'down is up'. Hah, hah. I am serious though. The market really sucks? I seem to be losing money in certain oil and gas stocks even though oil has been climbing to new highs daily. I am like what the heck. Yes, it seems like I am always losing lots of money in the market, but sometimes blue-chip investments touted as safe sometimes can be really just as unsafe. My thoughts are- even if the stocks of the oil and gas companies that I own in my portfolio were trading at ridiculously high PE ratios, by virtue of oil being above $100 for so long, my oil and gas stock should be trading at a thousand percent higher. I should be rich and well off- vacationing on the beaches of Monte-Carlo. NO-o-o! Instead, I am barely afloat- having to liquidate most if not all of my portfolio to stay alive.
This stinks--phooey! Maybe I will just ask Dick Grasso, for a cash investment. I promise, I will use it wisely- no sub-prime loans for me. Well, If you are still persistent and believe in democracy, capitalism and the 'invisible hand of the markets' then I have a stock for you. I have been tracking a utility stock for some time now and its doing fantastic. Its was up 25% in over 2 months from our tracking purchase price and it even pays a decent dividend.
Name of Company:Nicor
Stock Symbol: GAS
Sector: Utilities
Sub-Sector: Electric Utilities
Yield: 4.6%
Closing Price as of 07/11/2007: $40.21
==============================================
Company's description: Nicor is a holding company. Gas distribution is Nicor's primary business. Nicor subsidiaries include Nicor Gas, a distributor of natural gas, and Tropical Shipping, a transporter of containerized freight in the Bahamas and the Caribbean region. Nicor also owns several energy related ventures, including Nicor Services, Nicor Solutions, and Nicor Advanced Energy, which provides energy related products and services to retail markets, and Nicor Enerchange, a wholesale natural gas marketing company. Nicor Gas maintains franchise agreements with most of the communities it serves, allowing it to construct, operate and maintain distribution facilities in those communities. Customers have the option of purchasing their own natural gas supplies, with delivery of the gas by Nicor Gas. The larger of these transportation customers also have the options of including the use of Nicor Gas storage system and the ability to choose varying supply backup levels.
Why should you buy this stock? Besides having a dividend yield of almost 5%, this stock have performed relatively well in this market. It's 52 week stock price is only off by 7% for the year. I see this stock as a natural gas play unburdened by the high cost of capital expenditures-particularly labor cost that many natural gas producers have to make in order to stay competitive, in addition according to the EIA although the price of natural gas is currently at very high levels, it is expected to increase further by the end of year and into 2009. At least for the short-term, "the natural gas spot price at the Henry Hub averaged $7.17 per thousand cubic feet (Mcf) in2007, and is expected to average $11.86 per Mcf in 2008 and $11.62 per Mcf in 2009. In June 2008, the average Henry Hub spot price was $13.07 per Mcf, increasing by $1.42 per Mcf over the May level. " The reasons for the continual prices increase: significant cost increases in onshore production, high oil prices, low liquefied natural gas imports. I believe these trends will continue throughout the rest of the year and Nicor will continue to benefit from the increases, however stock price levels could come crasing down to earth as supply levels continue to build and if the US has a very mild winter.
Calls: Oct 16 2008 Calls w/ Strike Price of $40- GASHH Bid:$2.05 Ask: $2.20
Puts: Oct 16 2008 Puts w/Strike Price of $45- GASTI Bid:$4.20 Ask:$4.60
Want to get into the stock market don't know how? Want to start slow or need an alternative to your broker? Try the easy Sharebuilder program and Buy Stocks for $4 per share. Need investment ideas? Call or email.
====================================================
The editorial content on this blog is written as a service to clients of UCS Investment Co. You should seek professional advice before implementing any of the strategies discussed herein, since: (1) The strategies are general in nature and will not apply to every situation; (2) Other opportunities may be better suited to your particular needs; and (3) The rules and regulations are constantly changing. Third party content such as Standard and Poor's, is a trademark of the Standard and Poor's company. We are not in any way affiliated with this company, nor do we receive any compensation from any companies for publishing these reports and recommendations.
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