Chef Elko said:
These LNG companies have been nerve racking! Been in and out of a lot of these guys over the past 5+ years, TELL, NEXT, NFE and VG. It's a wild ride filled with massive swings. Are you in the industry?
A little background but I will try and not be too long winded. Both Cheniere and Cameron LNG are big customers of mine. So I have learned a lot from that viewpoint. LNG companies essentially build their facilities after they lock down 15-20 year contracts. Big money is the "Spot gas" deals where ships are out and a country needs an emergency load so they pay a premium for these loads. So there isn't that wild swing you see as the commitments are long term.
I brought TELL in years back. They had long term customer pull out of their deals for various reasons. Hence their struggle and then buyout and TELL is now owned by Woodside.
I have mentioned VG and followed immediately at the IPO. This news for breaking ground on new facility CP2, is the 3rd in 5 years and in 2027 they are expected to become the largest exporter of LNG surpassing Cheniere. They have a ton of space to do so.
NEXT had construction plans halted due to last administration permit restrictions. I believe they will be allowed to continue trains 6-8 with this administration and be able to begin construction again. I bought in the $5's and sold. Bought again in the $7s and sold. and Rebought here today.
Long story short go look at LNG stock last 5 years. I am banking on one of these companies based on the potential to be a good growth stock. Maybe not $250/share range but my focus is continue to build netfree positions in these and then hold longterm.