I’ve been watching the indexes -- one day up, the next down. It might not inspire confidence but as an energy specialist, I couldn’t be happier – energy issues have done especially well in this choppiness. That’s not a reason to get comfortable, however – we’re still going to look for value. And I think we’re going to find it next in natural gas.
Some really oily plays have made us a lot of money recently: Anadarko (APC) gave us a great settlement on Tronox, Noble (NBL) sits solidly at $75, Halcon (HK) has gotten a terrific read-through into their Tuscaloosa Shale assets with the spectacular initial results from Goodrich Petroleum (GDP) – heck, even Exxon-Mobil (XOM) is again scraping the $100 benchmark. Yep, it looks like energy is the place to be in 2014.
But these and others, while they are still part of my portfolio, are from a trading standpoint, yesterday’s news. The stories on all of these has been already written and accounted for, at least in my investment mind -- with nothing left to do but stand back and trade around and out of them. It’s the new ideas that continue to keep me engaged in a market that looks overvalued and toppy.
And here is where the gassy names start to make some sense. In the ‘oily’ world, there are shale growth stories that are being recognized in share prices of domestic E+P’s. …