I Urged You to Buy These Commodity Stocks
- HGT: 26% capital gains in two months
- Earn an 8.8% dividend from HGT and XTO
- Three natural gas companies to buy right now
Natural gas prices have risen 25% since I started urging my Resource Prospector readers to buy natural gas stocks almost three months ago. While the early gains have already been made, it’s still not too late to profit from this long-term trend.
On April 1st I told readers,
And I recommended picking up some shares of Hugoton Royalty Trust (NYSE: HGT) a company that collects royalties from natural gas production and sales from XTO Energy Inc. (NYSE: XTO) - one of the largest natural gas companies in the United States.
Since then, the stock is up 26% and it has paid two monthly dividends to folks who bought before April 30th. And the company is still paying an 8.8% dividend. Compared with what you’ll earn in your money market account or a CD, the yield is pretty attractive.
I again recommended buying natural gas companies on April 5:
“I can’t think of a better time ... to get started investing in natural gas.”
On that day, I told you about a giant, domestic natural gas company. And admittedly, it hasn’t soared as high as Hugoton.
But it also hasn’t gone down either, and it’s still a great buy. Compare this still-dirt-cheap blue chip natural gas company (the red bar) to the S&P 500 (the blue bar) over the same time period:
The next day on April 6, I actually apologized for bringing up natural gas again:
I went on to say:
“I can’t emphasize this enough: we’re looking at something of a perfect bottom for natural gas companies right now. This type of situation does not come along very frequently.”
And I also recommended buying natural gas companies again (and again) on April 23, April 27, April 29, April 30, May 12, May 27 and May 28.
I hope you took me up on my research and recommendations and were able to get into Hugoton at an attractive price, or maybe you took advantage of one of the trial offers for Energy World Profits touting natural gas companies.
If you haven’t done either - well, there’s good news and bad news.
I’ll go with the bad news first: you’ve already missed out on getting into these companies at the best possible price. I hate to say I told you so, but over and over again, I’ve been trying to get your attention by informing you that $4 natural gas would not last.
The good news is that natural gas is still incredibly cheap, and buying these companies today still gives you huge upside as prices continue their slow and steady march upwards.
The first chart I showed you in today’s issue of the Resource Prospector only goes back four months.
Here’s a chart showing natural gas prices going back five years:
You can see how natural gas prices are still barely off their rock bottom lows. They have another 30-50% upside just to get back to normal levels of two years ago. And there’s the potential that we could see another double digit spike.
Okay - enough charts and statistics. If you’re not excited about natural gas, you might want to check your pulse to see if you’re still with us. But if you are excited, then it’s not too late to buy fairly valued natural gas companies.
Right now, I’m most excited about three oil and natural gas companies currently in production in what could be the largest natural gas field ever discovered: the Bakken region of North Dakota.
I like these companies in particular, because they’re drilling in what’s known as North Dakota’s Badlands. The area is beautiful, but also largely uninhabited, remote and almost completely unusable for any purpose. It’s the perfect region to have an oil and gas operation, because there are few people to complain. You couldn’t pick a more politically correct place to drill.
My boss and Chief Investment Strategist Ian Wyatt recently completed a full research report on these three companies, and shows you how you can get exposure to this great opportunity today. You can click here to read more about these companies - including the full details of how much oil and gas they have, and how profitable they’ll be in the coming months.
As always, if you have any questions or comments about natural gas, or anything else, please drop me a line at editorial@resourceprospector.com
Good investing,
Kevin McElroy
Editor
Resource Prospector
