Post by
retiredcf on Nov 21, 2024 3:17pm
Eric Nuttall
As you will read, he is becoming more bullish on NG but would like to see more buybacks with TOU (he mentioned, like ATH) so instead, he made ARX a top pick. GLTA
WATCH
Tourmaline Oil Corp(TOU-T)
21/11/2024
Tricky. Natural gas stocks have been on a tear the last few days, super hot, on fire. Extension of the Trump presidency. Certain investors are feeling FOMO if they don't own energy. Valuations are still compelling.
Thematically, he's bullish gas. Still exposed to weather, and though it's been warm up till now, there's a cold forecast. Gas can be volatile, so these names can be more volatile than oil. This name has lagged, and that could unwind. Doesn't love the variable dividend. Should be buying back stock. Good company, lots of inventory. But tactical timing is tricky.
Oil / Gas
Eric Nuttall
$67.90
Unknown
AI and oil.(A Commentary)
21/11/2024
Almost no interconnection. Main uses for oil are not for power generation. Natural gas and, long-term, nuclear tie into AI. The buildout of AI and data centres is real.
In the US, power demand was flat for 14 years; this is the first year with an incline. If demand in the US is expected to grow by 25% by 2040, where will the power come from? What about nuclear? Well, it makes a lot of sense, but you'd have to build 126 reactors, and that will be over decades. Wind and solar sources are not practical. That leaves natural gas.
Many people see nat gas as a bridge. But we're not bridging to anything; natural gas is going to carry the baseload for many years to come. That's why people are getting more bullish on it.
Eric Nuttall