Priced To Imperfection: Natural Gas Undervalued And Poised To Rally - The United States Natural Gas ETF, LP (NYSEARCA:UNG) | Seeking Alpha
Here is an outstanding article on why natural gas is being priced too low with many excellent charts and statistics to prove this case. He also presented a good explanation of how natural gas futures contango works. The expected return from a price rally is going to be less than the rally percent due to contango. Moreover, the author talked about how contango is even worse on leveraged ETFs like UGAZ. So, he suggested that we should buy the non-leveraged UNG or a stock like RRC in order to profit from the eventual rise in the price of natural gas.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment