Thursday, September 10, 2009

Get in on Natural Gas

Natural gas is the next green fuel that every investor wants to get in on to profit off of. The commodity has taken a huge tumble during this recession. However, most natural gas stocks have held their ground – some have even gone up despite the downfall of the underlying commodity.

For the long term investor, Linn Energy (NASDAQ:LINE) has an enormous dividend yield of 11%. If the stock price does nothing for 10 years, you’ll still double your money if you reinvest the dividends.



A more speculative play however, is Corridor Resources (TSE:CDH) which is a junior natural gas player in Canada. The stock is down quite a bit from its recent high of $3.35, and down even more from its $11 high last year. If the price of natural gas itself were to move back up to the $6-$8 range like most natural gas company CEOs are predicting, the stock can double and even triple along with the price of the commodity. CDH will probably hold its ground even if natural gas were to fall a bit further.



If you think natural gas is heading up and you’re looking for something more volatile with massive potential upside, Horizon Beta Pro’s 2x Natural Gas ETF (TSE:HNU) will return great profits if the commodity reverses its downward trend and rebounds.



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