The Fed Pivot Will Be Too Late - Winter and BIRNot sure if this qualifies as pumping....
https://www.streetwisereports.com/article/2023/02/01/the-fed-pivot-will-be-too-late.html
Winter Finally Arrives?
As you know, I have been bullish on energy and put the odds very high of an energy shortage this winter. Weather patterns suggested we could get a colder-than-normal winter. However, the weather is about as predictable as stock markets. North America and Europe were very fortunate because we had a far milder winter in December and January compared to averages.
That said, February can often be the coldest month of the winter and looks to be so this year. From the record warmth earlier this January, more seasonably cold weather for a large part of southern Canada and the U.S. Is arriving. The coldest air of 2023 has just plunged into the U.S. this past weekend with a stretched polar vortex.
From a good web site on Polar Vortex. Following the stretched PV, a larger PV disruption is likely that could bring a return of the cold to North America, Asia, and/or Europe following an interlude of milder weather. But much uncertainty surrounds this event, so my best advice is “the trend is your friend.”
Natural Gas prices have plunged with the above-average warm winter in North America and Europe, but all I am saying is that we are not out of winter yet. Perhaps the warm trend has come back; perhaps February will be very cold.
The chart above is on January 20th, and natural gas storage has been declining around the average rate of the past five years. However, this was in an above-average warm winter, and if February comes in colder than normal we could still see natural gas inventories plunge to very low levels that would spike prices.
I believe the natural gas price has bottomed. Note the high volume in the last several days at prices well below US$3.00. It looks like capitulation. Prices are down to a support level when oil and gas prices were very weak with the onslaught of the Covid-19 pandemic.
Birchcliff
Streetwise Company Fact Sheet (BIR:TSX)
2023/2/2 19:04:48
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Birchcliff Energy Ltd. (BIR:TSX) is my favorite natural gas stock. They just raised their dividend to CA$0.20 per quarter, so CA$0.80 for the year. This gives a yield of 9.4%.
There is some fear in the market with these low gas prices that Birchcliff could reduce the dividend. I believe natural gas prices are way over sold and will be back over US$3.00 soon.
The dividend is perfectly safe at US$3.00 gas, and although prices are below this now, the average price for the quarter will likely be above US$3.00.
Looks like a good entry price on the chart.
I am also suggesting the Birchcliff April $8.00 Call on the Canadian dollar side at CA$1.00
I believe government energy policies are going to result in energy shortages, specifically oil, and gas, but I am not against green energy, and many companies in this segment will benefit, like