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Strategies & Market Trends : Fundamental Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (2030)	7/23/2012 9:42:21 PM
From: Brian Sullivan	Respond to of 4719

A couple of months ago when the price of natural gas was bottoming at $2 and the Obama EPA was in the process of banning any new coal plants I went looking around at some companies that could benefit from the very low natural gas prices. I wanted to find a company that was producing NG turbines for electric utilities since I figured that almost all new electric loads would be sourced to NG instead of coal. Also Japan was in dire need of immediate electrical power generators as they decided to shut down all of the nuke plants. I only really found two companies that provided NG turbines for electric utilities which I did buy: GE and SI (Siemens). Later on I sold SI because of all of the turmoil going on in Europe. Both of these companies are mega conglomerate companies, so even though their NG turbine divisions are doing great you must balance that against the rest of the company's divisions that may do poorly. Then I looked into Cummings and saw that it was a dominate player in NG truck engines and that it had a great growth rate over the past 3-5 years and yet was trading a low PE ratio.