Natural Gas

This sector has had a heck of a run within the last 30 days. I keep raising my limit buy on EOG and am chasing the stock at this point. I've learned not to fight the trend and it appears Wall St. is willing to take nat gas higher as it has also had a great run recently. Could this be the story of 2008, much like oil was in 2005-2007? Should we expect a drastic drop off when Spring is nigh?

I've since raised my limit buy on EOG to $96. I'm interested to hear if you all think nat gas is overheated and due for a pullback and if my entry price is a safe bet based on TA and the price action in the commodity.

Thanks in advance.

PS: if there is a better play on nat gas other than EOG I am interested in hearing your opinion.

MadCow,
Have you looked at CHK? I've been following this about 9 months (I believe it was featured in Smart Money Magazine in September 2007, which is where I got turned on to it) Its had an incredible run over the past 2 weeks right up through earnings. If you read into earnings they actually beat estimates, once you take out one time charges. Company has been buying/leasing land and increasing production. CEO has been buying a good bit of shares and management seems to be solid. If you have the time to do some DD you should be able to find whatever you need. I hope this info helps. Just an FYI...I have owned this stock in the past but exited my most recent position Friday and am also looking to get back in.

The Poni

theponi said: ↑
MadCow,
Have you looked at CHK? I've been following this about 9 months (I believe it was featured in Smart Money Magazine in September 2007, which is where I got turned on to it) Its had an incredible run over the past 2 weeks right up through earnings. If you read into earnings they actually beat estimates, once you take out one time charges. Company has been buying/leasing land and increasing production. CEO has been buying a good bit of shares and management seems to be solid. If you have the time to do some DD you should be able to find whatever you need. I hope this info helps. Just an FYI...I have owned this stock in the past but exited my most recent position Friday and am also looking to get back in.

The Poni
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Yes, I am quite familiar with CHK. It was one of the first stocks I ever owned, back in mid to late 2005 during all the Hurricane Katrina mania I made quite a bit of money off of it. However, my understanding is that EOG is the most exposed to the spot price of nat gas (can anyone corroborate this?) because they are not as bound to contracts like CHK is and with the recent run of nat gas from just over $6 to nearly $10 in the last 6 months my thought process is that EOG would be the most likely to have an upside surprise. Thoughts?