Trump’s 10 Secret Stocks exposed for first time (From Porter Stansberry)
------------
With historic cold weather expected to chill the U.S., natural gas stocks are on the run.
According to BAMWX.com, “All systems go on Arctic air dumping into the US early to mid-Jan. We have been mentioning for weeks now to look for this period for our next cold air outbreak + increased winter storm potential. Polar Vortex position is prime for durable cold as well.
With that, natural gas prices – and related stocks could push aggressively higher, including:
Expand Energy Corp. (SYM: EXE)
Formerly known as Chesapeake Energy, Expand Energy (EXE) just popped from about $94 to $101.32 and could race even higher with cold weather. EXE was also upgraded to a buy rating by analysts at UBS, who now have a $123 price target. The analysts note that EXE’s “ability to ramp volumes into a rising natural gas price environment is a strategic advantage vs. peers, with at least 1.5B cfe/day of built-up productive capacity.”
United States Natural Gas Fund (SYM: UNG)
Shares of UNG just gapped from about $16 to $18.50 on news of colder weather. From here, we’d like to see the stock retest if June high of about $21.50. When the weather starts to warm up a bit, we can then go short or pick up put options on UNG, as well.
Kinder Morgan (SYM: KMI)
With a yield of 4.2%, Kinder Morgan (KMI) is also an attractive opportunity at $27.40.
For one, Kinder Morgan is the biggest natural gas pipeline operator with a 40% market share. Two, aside from colder weather, KMI could be a strong beneficiary of the artificial intelligence data center energy boom.
As reported by CNBC, “Natural gas is expected to supply 60% of the power demand growth from AI and data centers, while renewables will provide the remaining 40%, according to Goldman Sachs’ report published in April.”
Found this helpful? Share it with others.
Written by Ian Cooper