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Gold/Mining/Energy : Big Dog's Boom Boom Room
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To: Tommaso who wrote (72232)9/28/2006 11:18:45 AM
From: energyplay  Read Replies (3) of 206089
 
CHK may have to opportunity to pick up some unhedged and over leveraged players cheap.

I also have a preference for the unhedged producers, preferably with rising commodity prices ;-)

However, if prices can swing widely and far under costs of production, I think firms may have to hedge, or be able to shut down and almost go dormant.

If energy prices keep having the price swings like natural gas, that will devalue the whole sector, since about 90% of the NG E&Ps can't hedge like CHK and end up with stupid hedges that make Morgan Stanely & T.Boone Pickens rich.
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