RE: GasThe gloom protection league.
The market has an unusual and surprising amount of natural gas in storage now.
So this may take the first half of 2007 to work itself out.
Gas prices are seasonal and cyclic.
It is a lot better to be invested at a low gas price where you can look forward to a higher (as day follows night) gas price than to be invested in the high point of the cycle,
and having to worry about a reversion to the mean.
We are currently below the 200-day average.
That is the price should correct to the upside.
I think that this is what will happen the second half of 2007,
and those who persevere well be rewarded.
As for G2 the stock itself, we are not really in the gas business,
we are in the gas field development business.
If we successfully expand, the price should go up, regardless of a low gas price.
Most likely, I think that our future lies in becoming an attractive take-over target.
Some day a much bigger fish will say,
“My, that G2 has some good gas fields,
we should make them an offer that they can’t refuse.”
Anyway, that’s how it happened at Luke Energy,
and my long-suffering patients was very much rewarded.
Do you know that G2's chairman of the board, Hugh Mogensen,
was previously Luke Energy’s Chairman of the board?
I ought to know. I was a beneficiary when it was taken over hardly a year ago.
Before Luke, he was chairman of the board of Key West Energy.
I ought to know. I was the beneficiary, back then also.
Low gas price, tax-loss selling, all of this will pass.
I am here because I am following a successful leader,
and I am simply lining up to be a beneficiary for a third time.
RJ