Rise in natural gas prices was telegraphed by Wall Street in February. Simply a matter of the pros deciding to play this commodity for a couple of months in this case, encouraged by the drop in BHI's North American gas rig count. You can make more money (percentage-wise) by hitching a ride on smaller players the Street loves, like XCO, UPL, COG or SWN next time. Any natural gas exposure will do, though.
Addendum: Has anyone noticed how Wall Street is enamored with Marcellus players in the natural gas space and Bakken players in the crude space? Want a leg up on Wall Street longer term? Look at Permian players in both gas and crude. The Permian, expected by some to have more prolific unconventional yield than the other plays combined, already has built-in takeaway capacity (in all compass directions and via pipeline, rail or highway) and Vitol, the world's largest private trader, is building new storage capacity in Midland. Follow the money!
Agree. I bought some XOM recently at these prices for my Individual 401 K.... going to let it sit there for 20 years. Lots of upside:
1)Natural Gas Prices going higher (makes XTO purchase look better)
2)40% of XOM's refining is in North America... we know the positive things here
3)Buying $5 Billion in stock a quarter
4)Should raise the dividend 2nd quarter.
I think you should buy at these prices. Stock should be $125.
Simple math says that you will hold it until 2018 and then you will get a nice reward when it goes private. Of course this is my opinion....but the 5% buy back rate has been in place for years and by 2018 it looks ripe to flip.