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September 7, 2009
Edited: September 10, 2009
Share ThisUS is swimming in abundant supply of natural gas with prices at all time low. 15 years ago, most of the Canadian Taxi's in Toronto were using natural compressed gas due to cost advantage. I used to live in Canada at that time. You can tell the gas vehicles by the after burn smell. I do not know about the cab usage of natural gas at this time. Cabs are rare in my area. I have to book one ahead of time. Public city transportation does in exist in 90% of Michigan.
Next step by the current administration should be to offer some incentive to develop infrastructure for gas filling stations and conversion of vehicles to natural gas. The work can start by using big city fleets like NY, LA, Chicago where a little incentive to convert to gas can start quick pay back for users and administration. The gas produces only 33% of harmful pollution as compared to oil power.
The plays can be stocks like CLNE - provides Natural gas filling infrastructure or FSYS - supplies components and know how. Please add to the list of potential plays in this area.
I do not own any of the stocks mentioned above at this time except few options on UNG.
I plan to build 10% of portfolio around this theme. I am a buyer on dips only. My time frame is a year out and not willing to pay the top price to build a portfolio with 12 month time frame.
The smart money is made some times by not following the herd or being ahead of others. Folks made money when steel, coal and oil were going up and they made twice as much when it crashed in a short time. Smart money is made by selling before top or when it retraces by no more then top. 70% of investors get too late in to game and hold losers for long time
Update Sep 10 - UNG up 6%
