Stay away from Natural Gas Producers

from amprogram.com The AMP has sold out of the nat gas sector - still bullish on oil.

But - we do not like Natural Gas The number one position on the watchlist for nat gas stocks is Peyto (PEY.UN) . simply one of the best run natural gas producers in Canada. Their President's position in a recent release was although the short term price was not good , the long term price and long term reserves would do well for the Company. As an investor , I believe that analysis is correct - but my money can be working elsewhere today - and be in the nat gas sector - when and if the turn occurs. Many small natural gas exploration/producer companies rely on a " friendly " banker to stay in the business. Today’s prices do not make for great profit reports - the banks are going to be less friendly. Credit is being tightened and this sector has little to recommend it - except the potential of hurricanes and a dreadful winter. That is not much security for the bank or you and me