
NYSEAMERICAN:LNG
He trimmed his holding. They have a foothold in natural gas, the price of which has been falling. That price will reach a capitulation before bottoming. That's why he doesn't want a large holding, in case the baby gets thrown out with the bathwater. Supply is well above the 5-year average in nat gas; overproduction. If future prices fall below $1 that will signal capitulation.
After recently reported earnings beat analyst expectations, we select LNG as a TOP PICK. The developer of LNG infrastructure trades at 18x earnings and supports a monsterous 200% ROE. We like that cash reserves are growing, while debt is retired and shares bought back. Its modest dividend is backed by a payout ratio under 10% of cash flow. We recommend setting a stop-loss at $140, looking to achieve $200 — upside potential of 26%. Yield 1.1%
(Analysts’ price target is $200.24)