This is a real bottom, not one of the head fake’s we’ve witnessed over the past 5 years.
We are seeing significant drawdowns in supply and more importantly, the rig count is down 58% from 2010. In other words, supply is being dried out at a time when wells are shut in. Should we get a few supply disruptions this summer, the price of natty can spike higher.
The direct beneficiaries are companies who desperately need higher prices, like CHK, GMXR, KWK, UPL, ECA, SFY and CWEI. There are others and the sector is ripe for speculation.
In other news, Blackstone borrowed another $2.1 billion to buy more residential real estate. I’m telling you now, as I’ve told you for months, housing has bottomed and prices are going up–big time.