The Way to Play Utica Shale
As a new contributor, I want to introduce readers to my best ideas, which still have plenty of room to run. My investing philosophy is a bit more aggressive than others here, but I want to present readers with my more conservative ideas, which I believe have solid risk/reward scenarios.
The Utica Shale was introduced to investors via a lot of pomp from Chesapeake Energy (CHK) not long ago and investors initially cheered and then worried. The fears for many of the Utica plays, and companies focusing on other shale plays around the country, center around companies' need to drill and up their capital expenditures to levels that may force certain entities to outspend their operating cash flow (think Devon (DVN), Encana (ECA) and SandRidge Energy (SD)). In our investing experience this has been a necessary evil and the norm, but after the capital freeze that resulted from the housing collapse it has become a point of emphasis among investors as to which companies are able to operate within operating cash flow. ...894 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.
