| Title: | Market Investing |
| Moderator: | 2155::michaud |
| Created: | Thu Jan 23 1992 |
| Last Modified: | Thu Jun 05 1997 |
| Last Successful Update: | Fri Jun 06 1997 |
| Number of topics: | 1060 |
| Total number of notes: | 10477 |
What is your opinons on Natural Gas. Seems to have been talked about a fair amount lately in the press but I have not seem it addressed in this notes file. Natural Gas Boom, Bust or so-so?
| T.R | Title | User | Personal Name | Date | Lines |
|---|---|---|---|---|---|
| 473.1 | US News & Wrld Rpt of 5/17 | NECSC::BIELSKI | Stan B. | Tue May 18 1993 21:12 | 5 |
The May 17 issue of US News & World Report (p.54) has an article
titled "Fueling the future" that is postive about natural gas.
The subtitle: Natural gas is hot and could fulfill its fiery potential in
the 1990s.
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| 473.2 | NOTIME::SACKS | Gerald Sacks ZKO2-3/N30 DTN:381-2085 | Wed May 19 1993 15:50 | 3 | |
> Natural Gas Boom Let's hope not. | |||||
| 473.3 | Past results are no guarantee . . . | LEDS::DJBROWN | Wed May 19 1993 16:14 | 2 | |
Look at the rise in natural gas prices over the past year.
Are they likely to double again?
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| 473.4 | What goes around comes around | VMSDEV::HALLYB | Fish have no concept of fire | Wed May 19 1993 17:07 | 4 |
> Look at the rise in natural gas prices over the past year.
> Are they likely to double again?
I heard a similar comment about Microsoft a couple years ago . . .
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| 473.5 | Gas for long term growth! | KYOA::BOYLE | Dirty Jobs Done Dirt Cheap | Wed May 19 1993 17:56 | 33 |
I am assuming you are referring to a purchase of Gas stocks, not some
futures on the natural gas itself.
Knowing something about utilities in general (working as support on a
utilities account base for Digital [You decide whether this makes me
qualified to provide the following information]), Utilities are doing well
in general due primarily to the low interest rates. Low interest rates
are a double whammy for utilities.
1. Utilities are capital and debt intensive. Lower interest rates are
possibly a direct benefit to the bottom line.
2. For the stock price, low risk investors look to the constant
utility yields to offset the lowering of yields on bonds, etc.
Now, I think that we have seen the biggest short term share price increases
already. I would not anticipate an additional doubling of share
prices.
As a note for growth, I went to a gas utilities shareholder's meeting
the other day. He sees the biggest growth opportunity for gas being in
natural gas powered vehicles. Especially here in NYC, alternate fuel
vehicles are going to be required shortly. He stated that for each
natural gas vehicle equals about one house in average fuel consumption.
Each NYC taxi is equal to about 7 houses in average fuel consumption.
The point is that this CEO felt that, in the not too distant future, he
can foresee almost doubling his gas business by selling to fleet
vehicles. Now this is big news. Who knows what that means for share
price? It certainly can't hurt!
Anyway, thats my 2 cents.
Jack Boyle
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