Motley Fool Money: 01.13.2012
Motley Fool Hidden Gems Investing
The Motley Fool
4.3 • 3.1K Ratings
🗓️ 13 January 2012
⏱️ 39 minutes
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| 0:00.0 | Everybody needs money. That's why they call it money. |
| 0:16.0 | From Fool Global Headquarters, this is Motley Fool Money. |
| 0:19.6 | Welcome to Motley Fool Money. Thanks for being here. I'm your host Chris Hill and joining |
| 0:22.7 | me in studio this week for Motley Fool Hidden Gems, Seth Jason for Motley Fool Income |
| 0:27.1 | Investor James Early and for a million-dollar portfolio, Ron Gross. |
| 0:31.0 | Gentlemen, good to see you as always. Good to see you Chris. |
| 0:33.8 | We've got the latest on retail, hotels and Google's push back into China. We've got another |
| 0:39.5 | iconic business filing for bankruptcy and as always, we've got a few stocks on our radar, |
| 0:44.4 | but we will begin with the big macro. The price of natural gas has fallen 13% in the past |
| 0:50.1 | week. It is now at its lowest point in nearly two and a half years, James. What is going |
| 0:55.1 | on here? It is cheap, Chris. I think $2.77 per million BTU. Five years ago, it was over |
| 1:01.7 | 16 bucks. That's the equivalent of your car gas going from like $3 per gallon to 51 cents |
| 1:07.2 | per gallon. It's that much of a pullback. A few things are going on. Natural gas is |
| 1:11.0 | a byproduct sometimes of producing other things like oil. Also, some of the leases that |
| 1:16.9 | these gas companies sign require them to drill regardless of the price. In other words, |
| 1:22.2 | they're not just stopping production. They normally would when the price of a commodity |
| 1:26.0 | goes low. The big question, though, to me is, what does this do for structural gas demand? |
| 1:31.6 | Does this mean we're going to use more gas-fired electric generating capacity, for instance? |
| 1:37.3 | What is the play here for investors? Assuming you're not dabbling in commodities. Is there |
| 1:42.6 | a stock play here? A couple of things. It's obviously good for the half of Americans who |
| 1:45.7 | use gas to heat their homes. Electricity rates could go down. Another thing, infrastructure |
| 1:51.0 | companies, pipelines that ship the gas, kinder Morgan, enterprise products, partners, |
... |
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