It’s getting colder by the day up here in Montreal and sub-zero temperatures are slowly emerging (at night for now). If we get a repeat of last year’s winter the share price of a lot of NG weighted companies will be recovering on the back of rising natural gas consumption. Natural gas prices won’t be going through the roof but they will rise enough to impact the stock prices of companies that have been trashed due to their gassy production weighting; companies like Vero Energy VRO.TO 2.14 [-0.03] which is trading at a significant discount to NAV.
Source: U.S. Energy Information Administration
The EIA recently released this household heating chart where natural gas shows up as the dominating household heating fuel across the US. This is exactly why a cold winter in North America would push NG prices higher. The question is: are you willing to bet on the weather for a repeat of last year’s cold?
Blog Roundup
Getting Laid Off for the First Time: What I Learned from the Experience (Invest it Wisely)
Situational Awareness (smuggling an apple and getting tailed) (101 Centavos)
Favourite Takeaways – The Elements of Investing (Part 1 of 3) (My Own Advisor)
Definitive Guide To Investing In China (Intelligent Speculator)
HOWTO Do A 401K Rollover Correctly (Money Cone)
What Should Your First Investment Be? (20s Finances)
How My Investments Are Changing, Mutual Funds and ETFs Versus Stocks (Money Reasons)
Ending the Cycle of Debt (The Debt Myth)
The Economy is Turning Around (Barbara Friedberg Personal Finance)
Want Your Kids to Manage Money Well? Teach Them (Canadian Finance Blog)
Have a great Weekend!
Related posts:
