Is Cheniere Energy Overheating Again?
Back at the end of March, Stone Fox Capital suggested that Cheniere Energy (LNG) was overheating and investors should be careful buying the stock. The stock quickly surged above $27.50 with numerous technical indicators flashing an over bought condition. The stock spent the next five months fractionally above or below that level.
The company is part of a group of high profile stocks attempting to benefit from low natural gas prices. The group includes the likes of Clean Energy (CLNE) and Westport Innovations (WPRT) that have had drastically different stock results over the last couple of years with Cheniere dramatically outperforming the group. Ironically neither stock has actually benefited from the advantageous situation yet due to the lengthy period it has taken to complete infrastructure projects.
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