There are red flags all over the place with this stock. This company is losing money. At the very least, they are not making money. I don’t generally like to invest in stocks that aren’t profitable. Unless I find out something that would make me think differently about the future prospects of this company, I would stay out of this stock. The only way you would be forced to invest in this stock is if you buy a natural gas ETF, because they are one of the components of the major index.
This company made some money a couple of years ago. They brought in $69 million in 2007 and $251 million in 2008. Then they started losing money. They lost $36.4 million in 2009 and $19.58 million in 2010. Their sales have been on a decline as well.
This is a half a billion dollar company by market cap. They closed on the day at $12.26 per share and they are mostly institution owned. I would be very careful in investing in this natural gas stock.
Tags: natural gas etf