Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Dennis Roth who wrote (185006)	7/25/2014 12:11:18 PM
From: Dennis Roth	1 Recommendation Recommended By evestor Respond to of 206145

A Thought... Electric Utilities Gas Prices Will Be Focus for Integrateds, but Downside Cases Still Reasonable 24 July 2014 sendspace.com Our take: Natural gas is again reminding us of its inherent seasonality plus production numbers are better than the market (or our colleagues) had expected, creating downside risk to natural gas prices that could linger through the fall. We think core power market fundamentals – excluding natural gas – are still improving, as we have written, but we also have to accept that potential help from the next wave of positive power market catalysts (FERC 745, impact of coal closures, CO2 action) are not as near-dated as further downside risk in natural gas / power prices as we head toward the fall (where we worry the bias is lower but limited). For the stocks tactically, we worry the rest of summer bias is flat or down as arguments for lower estimates with gas / power price declines create negative comps that further worry investors who got involved with the stocks closer to the highs after RPM. If gas / power prices stabilize, we think investors will again focus more on the underlying power market fundamentals with more upside as we move toward winter when increased price volatility reminds of the positive thesis for the stocks.