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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: Rocket Red who wrote (169703)	7/14/2009 9:01:05 AM
From: jrhana	Read Replies (1) \| Respond to of 312983

<I agree with the concept that down the road we should see less violent swings in the price of NG. Because it's very simple. The price goes too low, just shut down your wells. It's as simple as turning a valve. Then when the price goes higher, just turn them back on. A self regulating mechanism. I don't think these companies will ever see huge margins on a price basis. So how will they make money? They will make it up in volume. I once to talked to a guy who had spent his life starting up successful business ventures. He told me that everybody always talks about profit in terms of a percentage of sales. But he told me that was precisely the wrong thing to worry about. What matters is your return on capital invested. I am sure these companies are expecting a nice return on the capital they are now so vigorously investing.> quote from myself <g>