Chris Forte’s Thoughts to Start the Day – Nat Gas and AR

Posted on April 27, 2022 by Scott Shuda

April 27: A few thoughts to start the day. . . Ever smash your fingers in a car door? That’s what it felt like to investors yesterday when the NASDAQ lost a whopping 3.95%. Yet late in the day Scott Wren, senior global market strategist for Wells Fargo said, “Our message to our clients is that, yes interest rates are higher but if you look back at the last six or seven hiking cycles what sectors have done the best? Technology.” He likes automation and efficiency companies that own their niche and are growing revenues.


On the Feed we do more than discuss microcaps. Commodities are a favorite topic. Check out “Taking a Look at Nat Gas”. Scott Shuda and Florian Buschek lead a fascinating discussion on the evolving narratives on natural gas. Scott points out that legendary investor Mark Fisher says, “”The big story is natural gas. Gone from $4 to $7, will move back a little, but going up until October. It’s the exports to Europe. NG is trading $32 over there, we’re not going to sell to them at the US price. Best risk reward trade I’m seeing now.” Florian points out Raymond James likes Antero Resources (AR). “Antero remains our favorite natural gas/NGL exposed stock. An extremely strong balance sheet, peer-leading FCF/EV yield, and below-average valuation all contribute to AR’s potential upside. We reiterate our Strong Buy and raise our target price to $52/share (from $38/share) on an improved free cash flow outlook.”


In CF Room I continue to build my position in Assertio (ASRT). The small pharm company has undergone a significant turnaround with new management. After climbing to over $3.40 on April 8, the share price has skidded down to $2.16. We think ASRT, generating strong cash flow, is a Strong Buy here in the low $2’s. . . “I honestly don’t know why Elon would want to own Twitter. It just doesn’t feel like a fun place to supervise. It’s like buying Jurassic Park after the power went down and the cages are open.” — TREVOR NOAH . . .Good luck to all.

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