RE:RE:Natural Gas Bets Drop to Five-Month Low on U.S. SupplyShambano1, you are reading too much into this propoganda if you believe the headlines that we will have a shortage in nat gas come this winter. Again, there will be no shortage of nat gas. The price of nat gas will rise, spike momentarily and storage will be filled no problem. Just like when you put an order in for PMT at market, it will get zapped up.
A better conversation would be to predict what price nat gas needs to get to in order to get storage filled. If there is doubt that storage levels will be filled I see nat gas going to 6 bucks, unsustained of course to get the job done. Then we might even have a surplus of storage and down nat gas will go.
PMT will enjoy the ride up over $2 if this happens but will be under $2 when nat gas retreats, unless PMT throws that extra cash at its debt.
Debt is still too high for this company for it to move anywhere and Q1 was not impressive. Those are the facts that are keeping the SP low. And if you think oil was a game changer, Calgary farts more then PMT produces in oil equivalents. Hardly a game changer with the volume they are doing.
There are better opportunities to play then PMT right now, still plenty of time to take advantage of this low SP in the days ahead. You won't see $2 bucks I don't think until November/December of this year. And that is a big maybe, there are many other opportunities in the meantime to make a lot more in the market.