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PMS Daily Digest for Monday, June 23, 2003


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Encana as you no doubt know esteemed Herr Dr Au was formed out of the the merger of mixing AEC with some PCP.... ( no Shit).... theses guys are mega large and they derive half their profits from NG. They also recently had a huge discovery off the Left coast of Canoodla..........

 

Think of ECA as the NEM of the gas group........

 

NXY is the undervalued one in the group it trades a discount to the group in terms of its price to cash flow.....

 

TLM... still is getting over the whole Sudanese thing.... they have a smart scottish fella running the ship there so you know you will be getting your moneys worth!!!

 

the muricano charts look nice.... DVN was a large buyer of CAN O/ stocks in 2001 I believe... I think it was rio alto they gobbled up

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TOO Bad about not being able to trade the smaller Gas plays out in the western sedimentary basin, Thor. Because that is where the next Baytex ( BTE)or progress energy (PGX)will come from.... The americans raided the patch in 2001 in M&A terms.... I think they will be back again in '04.

 

At Any rate there are a group of small producers who have vast land package on which the rigs are drilling as we speak. Nice thing about gas in this area is you can drill it find it and about 6 weeks later you can tie it into the pipeline and the Cash starts a flowin......

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I wonder now, as John123 wanders through the wilderness, what he is thinking about. My wondering over the weekend went along the lines of time for caution and if we break 160 I want back in. Where is the I'm wrong line for John123 I wonder?

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Ok Thor I wll tell ya what I gleaned..... looks to be that we are at the start of a 3 year bull in NG . That is a result of the supply demad equation in the gas itself.

 

Pete Linder at delta one has a similar take on the sector.....

 

Natural cycle is to have spring and fall troughs with summer and winter spikes.... we are currently corrcting the initial spring rally off the trough...

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I think we might find support here on the PMS, with the Hooey having hit a potential channel boundary but I would guess we have another 3 days of weakness to come before we get a bounce. Which would likely take us down to errr looks like 135.3 to 140.

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