Weather is warming up, next couple of weeks draws expected to be below average. So NG price crashing again (now back to $5.20). Told you to expect weather related increase in NG price to be temporary. Once winter is over, NG price will be under more pressure as production increases and industrial demand is still weak.
Two weeks ago, NG inventories were BELOW 5-year average for that week.
Now, two weeks later, they are 6.6% ABOVE 5-year average for this week and 9% above last year.
This is according to EIA data.
Let's hear how you think this doesn't mean we are likely to have larger inventories than last year considering we have 9% higher inventories now, production will be up compared to last year, and demand is still stagnating (and we got bad economic news this morning). If we were hitting the storage capacity limits last summer/fall, how are we going to avoid it this year?
Factoids, the author, is extremely knowledgeable and compiles more--and better--data on MLPs and other investments than most brokers or analysts. You'll note he does NOT recommend Crosstex. That is because it is NOT for "newbies" and it is not an investment, at least yet. If you are looking for an investment, not a trade, Crosstex is not for you, at least for now.
Click on "view messages" to the right and look at my previous posts about XTXI and XTEX. It will give you some background on how this company is restructuring and on a path for a fantastic recovery.
Then, do some research at the Crosstex Energy website to get some more background.
Make sure you look at news on this company over the last year or so to see what has happened. Plus, make sure you read the 10k for XTEX and XTXI for last year.
Then you will understand and get on board. Remember, you will get a much better distribution with XTEX down the road. You will get a better percentage stock appreciation owning XTXI. Also, you will have some paperwork issues related to XTEX distributions due to the way they are taxed.
Good luck and hope you make quite a bit of money here.