02-17-2014, 04:40 PM
(02-17-2014, 02:09 PM)Be Here Now Wrote:(01-24-2014, 11:17 PM)EricL Wrote: Have an article in the queue with SA that I'm hoping to get published. The consumer discretionary stocks I had on the list were COH, TUP, GPS, GME and PETM.
Also I think KO is attractive ahead of their expected dividend increase and GE has also pulled back quite a bit from the high and is up to a 3.3% yield.
I like LNCO/LINE, its been in an uptrend and yielding 9% and gas prices have been going through the roof which should bode well for the dividend. COG, CHK, COP, EOG are some other gassers that should benefit if the trend continues. Looking at the 6-14 day forecast I think there is still some decent upside in natural gas prices and we could be looking at tight supplies come spring.
The problem with natural gas prices for LINE/LNCO is that LINE hedges 100% of their output. This prevents them from realizing additional net revenue when NG prices rise, which is the penalty they pay for being protected from decreased net revenues when NG prices fall.
You are correct, according to most recent presentation they are hedged on nat gas through 2017. Rising NGL prices should help the bottom line however.