Go Have A Beer

Corona Works

We have lots of rain falling here in Texas today. I love it. A day off from the ‘usual’ grind we anticipate, eh? To a degree, yes, but in reality, we plan more than we act, and trust you do the same.

This brief respite also gives us a little time to discuss and present what we’re looking at for the long term. Always remember, we are long-term in nature because it works. Give it a try, and remember, most traders die broke.

LNG Is Real

Perhaps that is the biggest story and a major part of our plan. It always makes sense to have a plan, especially when it is based in the real world. Remember, there is always more than one way to accomplish your goals. When it comes to dealing with the world trade problem, you can (1) increase tariffs and (2) increase revenues.

Sure, the United States has been a patsy. We need to lower tariffs on our main product sales across the world. That’s a given, but it is only “part” of the solution. The second part is selling more of what you want others to buy. In this case, it’s Liquefied Natural Gas. Lots of investors have predicted this outcome. We’ve been early before, but it is time to be aggressive and long-term in nature.

Here are a few we are invested in:

• Antero Resources (“AR”)

• EQT Corp (“EQT”)

• Cheniere Energy (“LNG”)

• Ontiv Inc (“OVV”)

Go do your digging, just like has been done here. There are a few more to look at in the oil and gas industry, but these four offer a great place to start.

Natural Gas For The Long Term

When we make investment decisions, we include the “alternative” world. Just what is that? In our world, it is futures, options, and ETFs.

With respect to futures, we’ve long traded Natural Gas beginning with the “October” series. The reason is simple. That’s the month the world starts to look at the future. In our case, we are looking forward, out to the 2029 series and longer.

We are hedgers. We use “put and call” options, long and short, naked and covered, as the need arises. In other words, we temper our risk and seldom believe the trends are going to last forever. There’s more to this story, and hopefully, by the end of this week, I will finish and post an article about “gamma”. For now, know we use it.

Hey, we’re picking a “new’ Pope this week. I remember being stuck in Atlanta for the last pick. Sure was fun seeing the white smoke. I wonder how they did that. I’m not at all wondering how CSN wrote and sang Cathedral. They did not care who they upset. It made sense to them, and that is all that mattered. Makes sense to me. Not everyone is going to buy into my LNG position and plan. I don’t care. I’m not always going to be right, and I’m often early, but more than 90% of my ideas work, long-term, and that is what I sell.