Sprott Analyst Thinks Now Is the Time to 'Load Up' on Natural Gas Stocks

Sprott Asset Management research analyst Eric Nuttall told StockInterview.com he had ‘zero doubt’ that investing in natural gas stocks would provide an excellent long-term investment. The analyst said North American natural gas production has been declining for several years, and the gas storage surplus would correct itself.

Sarasota, FL (PRWEB) July 18, 2006 -- Sprott Asset Management research analyst Eric Nuttall told StockInterview.com, “There is zero doubt in my mind that natural gas is an excellent long-term investment. We’ve peaked in our ability to increase production meaningfully, just as we have with light oil.” Nuttall told StockInterview.com that the current surplus in gas storage will correct itself, advising investors to “position themselves ahead of natural gas stocks reacting to this inevitability.” He added, “Although the market might still be a bit sloppy for a few months, I think there are some great bargains to be had for the patient investor.”

Nuttall said in the interview, “Conventional gas production has been in decline for many years, and the growth areas have largely been unconventional.” He added, “One of the few remaining growth prospects in Canada for natural gas production is coalbed methane.” But Nuttall also said the CBM sector has suffered the past two months, “Nearly all small-cap natural gas producers have taken it in the teeth this year." He pointed out, “There are now companies whose stocks are down 40 percent year-to-date, and yet are still strongly growing production on an adjusted share basis.”

What does Nuttall advise investors? “Stocks are cheap on a price-to-cash flow and price-to-net asset value ratios," he said, "and now is the time to load up on the stocks." He cautioned, however, “Until the fall, barring a severe hurricane, it is likely that the stocks are going to trade sideways, as opposed to in any clear direction.” Nuttall named several of his favorite natural gas and coalbed methane stocks in the interview.

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To read the interview with Sprott Asset Management research analyst, Eric Nuttall, please visit StockInterview at http://www.stockinterview.com

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(SOURCE: StockInterview.com)

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