Thursday, October 11, 2012

Natural Gas Rally ($CHK, $CHKDG, $PTEQP)

The breakout in natural gas prices continues - almost the entire curve is now above $4, with the front month contracts at their highest prices since December 2011.

The CHKDG (Chesapeake preferred) is stuck around 82 - I think par would be a fair price at this point, which would be 22% higher. I'm happy to collect the 6.1% yield until that point. Similar story with the PTQEP pref.

No comments: