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Strategies & Market Trends : Value Investing

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To: Spekulatius who wrote (13942)6/2/2003 3:30:17 PM
From: Paul Senior  Read Replies (1) of 78669
 
I continue to chase small E&P stocks based on the well-known and expected natural gas problem/shortage/price rise.

These stocks can turn in a blink, and they're dangerous because they've almost all moved up substantially in price already. Many of these stocks have doubled and tripled. The natural gas problem has to continue (and we know consumers are resourceful in reducing demand or choosing alternate sources when a commodity price goes up sharply), and there needs to be new stock buyers drawn into buying these things. If Chairman Greenspan reports the problem on TV though, it's not going to be the smart money that's waking up to the issues now. Maybe it's just suckers (like me?) who are buying now while the smart money is exiting?? I feel like I'm late to the party, and if I'm not careful or lucky I'm going to be the person getting the bill for it.

Anyway, I've sold my coal stock, BTU, based on a brokerage downgrade on price, and I've started small positions in SKE and EPEX.

finance.yahoo.com
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