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S&P 500: 1,340.35 Change: -0.84%
pjgenot
P&P Score: 4.73 | Points: -38.41 | Accuracy: 67.86 | Average Pick Score: 18.19   Annual Return: N/A  
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Commentary
BUY: NGAS RESOURCES INC. (NGAS)
Start Price: $5.40
Points: -91.86
Created: 08/13/2008
Please Note: I use www.zackselite.com for my Company Profile and research information.

NGAS Resources is a natural resources company focused on natural gas development drilling and reserve growth. Based in Lexington, Kentucky, the company specializes in developing its own geological prospects concentrated in the Appalachian Basin.

Over the past few weeks, the market has been punishing the natural gas stocks. Natural gas prices are off nearly 10% and companies big and small have seen their shares tumble. The past 2 days have seen a slight bounce, but it still looks like a good time to get in.

Although U.S. natural gas production is up 8% this year, consumption is up only 5.5%. We all know what happens when supply is greater than demand. The price of nat gas could decrease...along with the share price of nat gas stocks.

But, I believe the long-term outlook hasn't changed. Natural gas is a clean-burning source of fuel...much cleaner than coal (which has had quite a run lately). I foresee strong demand for US nat gas for a very long time.

Shares of NGAS are currently trading about a buck over their 52-week low. The stock was trading at $10 per share in June...and then fell off a cliff. They just reported quarterly earnings, and "hit a home run." I'm an energy and natural resource bull...so I'm buyin'.

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