LNG…..It’s a gas man!
As cheap as….
Fundamentals
Liquefied Natural Gas is one of the few growing industries where take-overs and massive capital investments are occurring(Origin, Pure Energy et al, have seen their shares triple in months).On Friday 27th February a Norwegian company called Golar has provided a $500 mln investment in LNG(yes, the company has the same name as it’s industry…great brand naming!) to develop and manufacture liquefied natural gas scheduled for delivery in 2012. The boffins out there who like the chemical analysis and technicals I suggest visit www.asx.com.au, type in LNG under stock code and read their 25 page report posted on the 24th February…I’d rather focus on making money!
Recently Pure Energy(very similar company) is in a 2 way dog fight between BG and Arrow Energy, it’s share price has gone from $1.80 to over $8.00 in 4 months with Arrow energy(another recommendation of mine) sitting on a $200 mln profit having accumulated a 20% stake in Pure Energy.It looks like the UK company BG will win which could then see Arrow Energy adding to it’s current 9% stake in LNG…they may even go the whole hog and launch a take-over.
A Reuters survey of 10 analysts all said they are a buy…not always a good thing!
CHARTS
The share price action is very positive with a quadruple bottom at 60 cents and has certainly way out performed the stock market index as a whole. The shares closed on the 27th February at 64 cents.(see chart below)
My initial target is the huge resistance level at 80 cents where upon a break therefore and the old highs could be revisited. If you are a conservative trader then buy around Friday’s close of 64 cents with a stop loss at 58 cents, under the major support line of 60 cents. If you are like me, believing in the “Big Picture” then buy and revisit 12 months from now! This is another take-over candidate!
It's a gas man!!!!!!!!!!!!!