Last August, StreetAuthority analyst Nathan Slaughter made a bold prediction.
At the time, the price of natural gas had reached decade-low prices just a few months before, falling below $2 per thousand cubic feet (Mcf) in April of 2012.
Nathan predicted that natural gas was due for a rebound. He also spotted a huge disconnect between the rising price of natural gas and the share prices of the companies that produce it.
Since June 2012, the price of natural gas has doubled, reaching $4.40 in April before tapering off.
Now, if we were to take a look at the share price for the stock of a "pure play" natural gas company (as opposed to one that produces a combination of gas and oil), we might expect the share price to mirror the price of gas. After all, the spread between how much it costs for these companies to drill for gas and how much they are able to sell it for on the open market is how they make money.
Top Low Price Companies To Watch In Right Now: Eni(ENI.MI)
Eni SpA, an integrated energy company, engages in the exploration, production, transportation, transformation, and marketing of oil and natural gas. The company is also involved in the production and sale of electricity; refining and marketing of petroleum products; and production and sale of petrochemical products and hydrocarbons. In addition, it engages in the offshore and onshore hydrocarbon field construction. Further, the company offers offshore and onshore drilling, and offshore design and engineering services for oil and gas companies. It has a strategic partnership with Gazprom for the joint development of projects in the upstream oil and gas markets. Eni SpA has operations primarily in Europe, Africa, Asia, and the Americas. The company was founded in 1953 and is headquartered in Rome, Italy.
Top Low Price Companies To Watch In Right Now: Commonwealth Bank of Australia (CBA)
Commonwealth Bank of Australia (the Bank) is engaged in the provision of a range of banking and financial products and services to retail, small business, corporate and institutional clients. The Bank is a provider of integrated financial services, including retail, business and institutional banking, superannuation, life insurance, general insurance, funds management, broking services and finance company activities. Its operating segments include Retail Banking Services, Business and Private Banking, Institutional Banking and Markets, Wealth Management, New Zealand, Bankwest and Other. Its retail banking services include home loans, consumer finance, retail deposits and distribution. Its business and private banking include corporate financial services, regional and agribusiness banking, local business banking, private bank and equities and margin lending. The Bank and its subsidiaries ceased to be a substantial holder in Ten Network Holdings Limited, as of September 12, 201 2. Advisors’ Opinion:
- [By Toshiro Hasegawa]
Commonwealth Bank of Australia (CBA) fell 1.1 percent to A$73.73. Singapore Telecommunications Ltd. (ST) retreated 1.1 percent to S$3.78 today after posting earnings.
- [By Yoshiaki Nohara]
Panasonic Corp., Japan