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Gold/Mining/Energy : LNG -- Ignore unavailable to you. Want to Upgrade?

To: Dennis Roth who wrote (391)	3/8/2005 12:36:39 PM
From: jad	Respond to of 919

Cheniere Energy (LNG): 77.25 -1.00 A wise old saying in the stock market is "buy low, sell high." In the case of Cheniere Energy, one might want to re-phrase that to "buy high, sell higher." We last wrote on the company on New Year's Eve, 2004, which to some seems like a long time ago. Since that time, the stock is up from $63.05 to a close yesterday of $78.25 on Monday, an increase of more than 24%. So what has been driving the increase in the stock price? Quite simply, the story is getting told. Add to that the idea that several prognosticators have continued to pound the table over owning an energy-based mutual fund. Energy funds have also seen huge inflows of funds. Another just as important idea has been the rising prices of energy, particularly the price of oil. The recent increase in gasoline prices will likely drive even more interest in the idea of liquefied natural gas. Gas demand had previously been somewhat elastic as US consumers did not slow their purchases much at all through last summer when gas prices were hitting highs around $2 a gallon. While the most latest increase is too recent to see any effects, the mere talk of $3.00 a gallon and higher gas prices pushed crude oil up again yesterday. The price of natural gas has come down from a bit from an earlier spike that sent prices above $9. But when one takes a longer term (monthly) look at the price, a clear trend emerges, and its one that suggests higher prices are still on the way. These general ideas all lead to what could be good things for LNG and its shareholders. And in getting back to the idea of buying high and selling higher, one could easily argue that at $63.05 the stock was quite high, and the stock at $78.25 is in the same perspective. While engineers and scientists work on the alternative fuels of the future, investors can buy stock in a company that is already delivering it. The only thing left to happen is a grass-roots movement that demands that natural gas companies develop more LNG terminals to help bring down natural gas prices.