Investors & Friends:
Here's a summary of our investment actions from the past week.
Short Strategies
1) We sold short shares of the United States Natural Gas Fund LP (NYSE: UNG) on 2/24 @ $21.36. The price of natural gas continues to fall. Demand and supply are increasing but new supplies continue to outstrip demand. Demand will continue to pickup from natural gas vehicles, increased industrial use, and expanding exports. But demand doesn't ramp-up overnight, and supply is increasing at a faster rate. The rate of increase can slow if the government restricts drilling and gas companies pull back, limiting supply. The fund also suffers from the phenomenon of contango and a requirement to sell the current month futures contract and buy the next month futures contract.
Click here for the Investrio Stock Selector Fund Bull and Bear Market Indicators Report for the week ending February 24, 2012.
Click here for upcoming IPOs.
Lead Fund Manager
Investrio
Here's a summary of our investment actions from the past week.
Short Strategies
1) We sold short shares of the United States Natural Gas Fund LP (NYSE: UNG) on 2/24 @ $21.36. The price of natural gas continues to fall. Demand and supply are increasing but new supplies continue to outstrip demand. Demand will continue to pickup from natural gas vehicles, increased industrial use, and expanding exports. But demand doesn't ramp-up overnight, and supply is increasing at a faster rate. The rate of increase can slow if the government restricts drilling and gas companies pull back, limiting supply. The fund also suffers from the phenomenon of contango and a requirement to sell the current month futures contract and buy the next month futures contract.
Click here for the Investrio Stock Selector Fund Bull and Bear Market Indicators Report for the week ending February 24, 2012.
Click here for upcoming IPOs.
Lead Fund Manager
Investrio
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