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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: kollmhn who wrote (2348)	6/25/2001 9:26:18 AM
From: jim_p	Respond to of 206191

Sounds like Raymond is getting a little more bearish? Raymond James Energy Stat of the Week, published 06/25/01. While we have expected this energy market downturn since April, it is always painful when reality slaps you in the face. Gas prices have not fallen as fast, or as far, as we had expected them to fall. Additionally, the Bush Energy Plan helped push the stocks up in the face of deteriorating gas fundamentals. The past week, however, both the gas markets and the equity energy markets have come back to reality. Both markets are beginning to realize that there is simply too much gas in the system, and the only way to rebalance supply and demand on a short-term basis is to take gas prices down sufficiently to discourage the fuel switching that is currently occurring. That means that we are likely to see downward pressure on gas prices over the next month. That being said, increased mid-summer demand from new gas-fired generating units is likely to push natural gas prices back upward in the July/August time frame. Unfortunately, we still need better visibility on year-over-year gas storage trends, warmer weather, and coal-fired electric production before we can gauge just how much gas prices may improve in the July/August time frame. Given these natural gas uncertainties, we continue to remain very cautious/bearish on both the E&P and the oilfield service groups, at least through the second week of July. Short a leveraged NG stock and make money. Jim