Facebook's IPO Debacle, Day 3: Un-Friended and Dis-Liked on Wall…
Former Olympic Rower Turned to Minimalism to Pay Down $82,000 in Debt"Oil stocks have been hinting at a rebound; as much as I think that crude oil is oversold, natural gas looks even cheaper," says Charles Payne.
The editor of WStreet Strategies explains, "Natural gas has a propensity to become oversold, and this is one of those instances." Here, the advisor reviews a pair of favorites in the sector.
"Natural gas is at April 2005 levels, the economy will drift but it's not going to roll back to levels of three years ago.
"Moreover, demand should surge as the nation's demands on the electric grid increase exponentially over the next few years. Folks, plug-in cars are going to suck up all the coal and natural gas available, and demand even more.
"In the near-term, I think that the risk/reward has shifted substantially and should trade in a range of $6.50 to $9.50, but at some point soon the bias will shift higher.
"Chesapeake Energy (NYSE: CHK) is down big time, and made news for one of the most famous executive margin calls in this current meltdown.
"Although the company's CEO, Aubrey McClendon, was forced to sell over 90% of his holdings he was putting his money where his month was.
"In the meantime, there has been 8 insider buys for 2.5 million shares. I've seen this stock climb out of much tougher situations than this. The company reports on October 30, and there is some anxiety, but the company has beaten the consensus in each of the last four quarters.
"Mainland Resources (NASDAQ: MNLU) is one stock that I've liked for a few months and I think the story has become even more compelling.
"The first spud on the company's property in the Haynesville Shale region happened this week. Here's what's interesting. The well is a joint venture with PetroHawk, which is putting up close to $10.0 million and only taking 40% of the resources.
"PetroHawk has 100,000 acres of its own to explore so why are they putting up all the money and expertise to search for natural gas in a deal that pays them less than half the proceeds?
"I really believe that the company has something more than a hunch. If the Haynesville Shale lives up the hype this is an $11.00 stock or better."
Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
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