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@MFO Members & hank: As a matter of fact I was just getting ready to recommend PG&E Preferred's A thought I. The quarterly dividend has been suspended and the shares are selling in the $15 dollar range from $25.00 their par value. Since the shares are cumulative once the company is reorganized the interest on preferred shares must be paid back. I'll let you do the math but their is an excellent opportunity for both capital appreciation and yield. I wouldn't bet the bank but I believe there is money to be made here. Remember were dealing with a public utility a necessary service not a Toys“R”Us. I had a similar situation happen some years ago with Edison International (EXI) and did very well.
Yikes! What a difference a year makes. Just noticed natural gas is off 3.5% today alone and sitting under $2.00.
I have never watched an asset languish by this much this long. Don’t know when the slide started, but likely over a decade ago. The good news is gas’ price doesn’t run with oil or refiners. Most days it seems to go in an opposite direction. (It is, of course, a byproduct of oil drilling / fracking). Oil’s come back a bit this week after a big drop right after Mideast tensions ceased. Right around $64-65 which isn’t bad. FWIW - my commodity related funds seem to be above water so far this year.
Sorry for pulling up the year-old post. Just trying to spark some interest.
My own feelings are that the fossil fuels may present "trading" opportunities along the way but that they hold little if any value in terms of being a future long term growth investment.
I have found that mean reversion is the most powerful force in investing aside from compounding returns. Very long FCG, buy the big dips, sell after rallies, get tax advantage (mind the wash sale rule) and there will be at least once chance to dump out at a profit...even true with coal (but that play is over IMO). I have never seen an asset butchered like natural gas. There are still plenty of users and at some point the price reaches the cost of production. As has been said, there are few bad investments but many bad prices.
Sorry. When I read the subject of this post, I wanted to come over and say "Excuse me, but I don't fart". Sit on natural gas...
Bad jokes aside, I thought maybe I should buy some stock after my last one (MCI) and was looking at SWN. Then it dropped 10%. Then I remembered why I don't invest in individual stocks.
Comments
WSJ Preferred Stock Tables: PCG A/I:
http://www.wsj.com/mdc/public/page/2_3024-Preferreds.html?mod=mdc_uss_pglnk#P
Quantum Online PCG A/I:
http://www.quantumonline.com/ParentCoSearch.cfm?tickersymbol=PCG
PG&E Press Release:
http://www.pgecorp.com/news/press_releases/Release_Archive2019/190114press_release.shtml
Derf
I have never watched an asset languish by this much this long. Don’t know when the slide started, but likely over a decade ago. The good news is gas’ price doesn’t run with oil or refiners. Most days it seems to go in an opposite direction. (It is, of course, a byproduct of oil drilling / fracking). Oil’s come back a bit this week after a big drop right after Mideast tensions ceased. Right around $64-65 which isn’t bad. FWIW - my commodity related funds seem to be above water so far this year.
Sorry for pulling up the year-old post. Just trying to spark some interest.
Bad jokes aside, I thought maybe I should buy some stock after my last one (MCI) and was looking at SWN. Then it dropped 10%. Then I remembered why I don't invest in individual stocks.
Natural Gas Reforming