Is Chesapeake Stock Set to Rebound Together With Natural Gas Prices?

From Seeking Alpha:
Everyone knows that it is best to buy assets when they are unloved and cheap. The problem is that few investors want to buy a depressed asset when no one else seems to want it. However, investors like Warren Buffett and Wilbur Ross have made huge fortunes and both are now billionaires because they have bought what's cheap, and not what's popular. You don't see these brilliant investors buying the latest hyped-up IPO, but rather value-oriented assets.
Not that many years ago, gold was trading for even less than $300 per ounce, but now it is close to $1,600 per ounce. Gold is a prime example of how a natural resource asset can see a huge change in price and investor interest. It has parallels to natural gas because when few investors wanted gold at $300 per ounce, many mines were not able to produce it at a profit. But all that has changed, and a similar reversal of fortune is now possible with natural gas, especially with more valuable and readily exportable liquid natural gas.
Natural gas appears to have put in a long-term bottom and has been trending higher for the past few months. This is extremely bullish, given the negativity surrounding the global economy and financial markets. The main reason natural gas is poised for a secular rebound is simple economics:
A barrel of oil is equivalent to about 6 thousand cubic feet of natural gas. Based on this, the current price of natural gas at around $3, is equivalent to buying a barrel of oil for just about $18! This major price discrepancy is getting noticed by industry and governments. A major shift has started to occur, trucks are now being made to run on natural gas, major utilities are switching power generation to run on natural gas instead of coal, and liquid natural gas is poised for a future export boom from the United States because it is transportable and far more valuable in other countries that do not have an abundance of natural gas. There are even fears that new liquid natural gas export terminals, which are currently being constructed, will lead to a price spike for U.S. consumers since it isworth about five times as much in Asia and Europe.
Read the rest of this article here.

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