March 9th 2023 Free Analysis - Natural Gas

Hey MPA Investors!

One more day till Friday. Let's do this!

THIS WEEKS' MOVERS SNAPSHOT

Natural Gas (Commodity: NG-F) -Natural gas is a vital component of the world's energy supply. It is one of the cleanest, safest, and the most useful of all energy sources. Given its growing resource base and relatively low carbon emissions compared with other fossil fuels, natural gas is likely to play a greater role in the world energy mix.

Why Natural Gas?

Europe will not rely on Russia to refill it's capacities for the next season so demand is going to rise from other sources. That means Europe will have to increase purchases of liquefied natural gas (LNG) from the US. But Europe has limited infrastructure for taking in LNG. So they will have to figure out solutions moving forward.

Why we feel there’s a buying opportunity:

1. The US LNG exports will rise considerably in 2023 and beyond. This could result in a rise of the natural gas price in the US due to limited supply. Which in turn could cause fear over natural gas shortage in the US. Which can then have a positive impact on US Natural Gas prices causing them to go up. It's kind of cool how all of these things are connected.

2. Natural Gas has hit it's lowest price in almost 2 and half years at $2.11. That's down from $9.97 back in 2008. If the factors above allow it to bounce back, that could mean a big win for Natural Gas prices.

Summary: My Pocket Analyst considers the price of GAS undervalued at these levels. Taking into account the global supply chain concerns and the US beginning to sell to Europe, we see supply playing catch up with the demand. That means we should see an increase in the price.

CURRENT PRICE (as of this email): $2.59

TERMS YOU NEED TO KNOW

Capital Loss -  The amount of money you lost by selling a stock for less than you bought it.

See you on Monday!Thibaud & PhilipInteresting Investment Facts:  The greatest returns come from when most people expect the biggest losses. The best three-year period of owning stocks was during the Great Depression.

Let’s talk investment risk:

No matter what anyone tells you, every investment comes with risk. Even keeping your money in the bank comes with risk. The risk isn’t very high for keeping your money in the bank, but there’s still a risk. Believe it or not, there’s even a risk for keeping cash. You could have it stolen or in 5 years it could be worth less than it’s worth now because of inflation. So it’s important to understand the different levels of risks that come with investing of all kinds. We would not recommend investing in individual stocks as a retirement plan. If you’re interested in investing in stocks for other reasons, the analysis we give you could help. But we have to be clear, these are NOT recommendations, this is analysis. We give you the analysis similar to what pros get and you decide what to do with it. Our mission is to put the same information that the pros get, into the hands of everyday investors like you in a way that is easy to understand.