Q: Tourmaline has been on a slide recently. I am looking for a bounce and will be selling my position and would have thought the excessive heat in the US and parts of Canada would have supported the price of Nat Gas and thus Tou. That hasn’t happened.
Could you provide your opinion on the short term, 3-6 months, price of Nat Gas and Tourmaline’s stock price?
Could you provide your opinion on the short term, 3-6 months, price of Nat Gas and Tourmaline’s stock price?
5i Research Answer:
High gas inventories and a slow re-start to LNG plants in the US (after the hurricane) have really hurt natural gas prices recently. We do not spend a lot of time predicting commodities, and short term predictions are not much more than guesses. But a 31% drop in less than a month seems excessive to us and we would expect to see some recovery here. TOU has actually held up quite well in comparison, dropping from $62 to $59 in the same period. It is still up 1.5% this year and we might guess a target of $63 in the time frame noted.