NWE is still holding up well in the overall energy market downtrend. Let’s hope this continues. I sold half my holding around 12.5/13c on their last spike not so long ago, but have kept half for the current gas drilling and later Magnolia.
Unfortunately US gas stocks are all getting hammered at the moment (have a look at AZZ, FAR, NEO, PSA etc) and so if we get good gas results, I would expect NWE’s SP to jump upwards a little but settle back quickly again due to the negative oil/gas sentiment prevailing in global and local markets. But, because everyone is expecting good Appalachian results anyway, there may already be a reasonable premium already built into NWE’s SP at 12c.
Nothing much has changed on the global front. All major indices and sectors are still in downtrend at the moment, and with oil/gas prices still falling, the energy sector is getting hammered across the board, but it’s still good to see NWE holding up against this tide.
Hopefully there will be a little run up in the SP to Magnolia (giving us traders the opportunity for some more profit) but drilling is still a few months away, so anything could happen beforehand. I think keeping tight stop losses is still essential until there are clear signs of a turnaround in the US market, which at the moment, is not very exciting.
Mensa.
NWE Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
