RE: scotia has an outperformIt is funny how these firms are pushing people to get involved in Gas sector when gas price is at its lowest level since years and there is excess gas all over North America with no discipline in closing some valves to reduce inventory.
Gas is in the ground and it should stay there if there is no value attached to it, but greedy greedy are some of these companies and they are ready to sell it just to cover fix costs. This does not create value for the shareholders.
Unfortunately until winter take its place gas price will stay on the low side.
One interesting point is to review Encana last quarter results where CEO said that they should cut back on production. Maybe the big guys start to understand that it is better selling less at a higher price that selling more at a small price. One BTU (brithish thermal unit) worths value. With time this value should increase but in reality all this sector is driven by offer and demand but on top there is speculation which I don't really like...I guess like everebody else.
Scotia or others are just rating the gas sector as outperform and today most of stocks are down ?????
Only one good thing about this is you can buy low and sell higher later in 2012 or 2013.
We will continue to experience up and down with high volatility until inventories are cut back to a more decent level... Let's wait for the next overall gas results in injection versus inventory. For now patience and prudence are the key.
Hold to your shares because value is in the ground when price will be right.
Discipline from the industry would be welcome at this point !
Do your own research
GLTA