You've been busy doing research in the past couple of days. It certainly makes for interesting and compelling reading.
Well done and thank you. We can never read too much about the future prospects of LNG and what may lay ahead.
Had the opportunity of meeting with a group of shareholders this morning who became shareholders at the start of the year when everything was about ready to take off with our favourite stock.
The question they kept asking me the most, was how far can LNG's share price go.
It's an interesting question when you consider where it has actually come from in record quick time.
But the reality is LNG is on a path to unparalled growth PROVIDING everything goes according to plan. Most companies will never be able to earn the type of revenues that LNG will be capable of in the future. Thats just reality. Its like the best soccer players in the world earning between 250 and 500 thousand per week compared to our best Footballers earning between 500 and a million each year. Some companies just like individuals have got the capabilities of earning gigantic amounts of money. As I said that's just reality.
Luckily for us our LNG just happens to be in the right type of business that can command that type of earning power. The biggest companies in the world often happen to be energy companies.
Whether it ever climbs to the top of the mountain to compete with the biggest and best remains to be seen.
But it does have the ability to achieve it and that's a jolly good start in my humble opinion..
In 10 to 15 years time LNG could very well be on the way to establishing itself as another Woodside Petroleum. I think Woodside currently have a market cap of about 33 billion. They are Australia's largest and most independent oil and gas company. Compare that to our paltry 2 billion and it gives you some idea just how big LNG could still become if things pan out the way we hope in the years ahead.
When I mentioned this fact to my friends, they all just looked at me and were waiting for me to start laughing.
They soon realised that I was being serious.
When I was one of the main posters on Hotcopper singing the praises of LNG at 30c and suggesting that LNG could very well become the best performing stock on the ASX in the next 12 months, many may have thought the possum had lost his marbles.
Truth be known, the rapid rise even caught me by surprise. I always believed it would happen, not just this quickly.
To be 100% honest, how could anyone truly believe that a company could go from being 12c to $4.45 in the space of just one year having earnt not one cent.
Which has made me realise one very important factorg, and that is, it can ONLY actually happen when you have the right business model and you are dealing in the right commodity. In our case it just happens to be in energy. Something the world can not survive without. And not something that can be easily replaced.
So therefore a company that we can all identify with in Australia, like a Woodside Petroleum, will always prosper and will continue to expand it's business, because the world will always continue to grow and will continue to become more populated thus requiring an abundance of new energy. The search will always continue for oil and gas. We will never have enough.
And if one day they are able to find another cost effective energy source that will replace the use of gas then it might be a good day to start selling ones LNG shares.
Somehow, I just cannot believe this will happen in our life time.
Cheers.
LNG Price at posting:
$3.72 Sentiment: Buy Disclosure: Held
