bought 10000 at 6.70 and will continue to build a large a position as this drops to $6...
yeah its out of favor and being dumped. but thats when you build a position.... I can hold and collect my monthly dividend...
last time I checked there is no substitute for oil and nat gas.... right now its "risk off" and money coming out...
Check out how quickly a stock can rebound when it is punished over dividend threats.
Check out SFL:
It had a $.39 dividend but then their major customer had to go through restructuring and SFL cut the dividend. People were speculating about the dividend cut for the better half of 2011. Stock got CRUSHED. Dividend ended up being cut for Q1 this year from $.39 to $.30. Then Q2, the restructuring worked and dividend restored to $.39. SFL vaulted back up from $9 to $15 in spite of Europe (they are based in Europe)
So you spent $67,000 on a stock that is going down, is at the mercy of U.S. pricing, a very possible dividend cut, and very little upside potential for 3-4 years. You either have balls of steel or no brains at all.
Look at coal stocks. Power plants are rapidly switching to nat gas from coal. Transportation industry continues to add nat gas usage.
The thing about commodities is their prices can really spike when a shortage occurs. If people keep increasing demand of nat gas and it outpaces supply by a modest amount, we could be back at $10 nat gas in 1-2 years.
Also don't forget about the prospect of selling it to Japan and China.