As I analyze possible runners this week I keep coming back to Cheniere Energy, Inc. (AMEX:LNG). This play has the potential to run to $5.00 or more per share in a small amount of time and could be the hidden gem traders are looking for.
Cheniere Energy is currently trading at $2.92 per share. It is being held down by a block of 30,000 on the offer at $2.93. Note, this block was scooped up as I was writing this. The key reasons for the run are as follows. First, natural gas has broken out in recent days. Take a look at the United States Natural Gas Fund, LP (NYSE:UNG). Second, constant talk about the new energy bill in the United States has natural gas taking charge. It appears a major shift is underway towards natural gas, supposedly a cleaner burning fuel that is plentiful in the United States. As natural gas has broken out and talk about the energy bill has continued, many other natural gas plays have surged higher. Atlas Pipeline Holdings, L.P. (NYSE:AHD) is one of the best examples having run from under $4.00 on July 7th, to a high today of $9.88. Crosstex Energy, Inc. (NASDAQ:XTXI) has run from around $6.00 per share to a high today of $8.35 in the last two weeks. There are countless other natural gas players that have jumped like these two.
Cheniere Energy has yet to be discovered. In addition to the beautiful bull flag on the daily giving a signal of accumulation, the stock has 7 million shorts as well. That is 20% of the total float and a major squeeze play if it starts to run. It is being held down right now by shorts, any sort of break out and this has the potential to run to $5.00 or more. Watch this one closely, it could be a major player in the next week. I bought some here at $2.93 looking for the breakout. For more information, analysis, guidance and education, join the Research Center.
Gareth Soloway
Chief Market Strategist
Cheniere Energy is currently trading at $2.92 per share. It is being held down by a block of 30,000 on the offer at $2.93. Note, this block was scooped up as I was writing this. The key reasons for the run are as follows. First, natural gas has broken out in recent days. Take a look at the United States Natural Gas Fund, LP (NYSE:UNG). Second, constant talk about the new energy bill in the United States has natural gas taking charge. It appears a major shift is underway towards natural gas, supposedly a cleaner burning fuel that is plentiful in the United States. As natural gas has broken out and talk about the energy bill has continued, many other natural gas plays have surged higher. Atlas Pipeline Holdings, L.P. (NYSE:AHD) is one of the best examples having run from under $4.00 on July 7th, to a high today of $9.88. Crosstex Energy, Inc. (NASDAQ:XTXI) has run from around $6.00 per share to a high today of $8.35 in the last two weeks. There are countless other natural gas players that have jumped like these two.
Cheniere Energy has yet to be discovered. In addition to the beautiful bull flag on the daily giving a signal of accumulation, the stock has 7 million shorts as well. That is 20% of the total float and a major squeeze play if it starts to run. It is being held down right now by shorts, any sort of break out and this has the potential to run to $5.00 or more. Watch this one closely, it could be a major player in the next week. I bought some here at $2.93 looking for the breakout. For more information, analysis, guidance and education, join the Research Center.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
