Today I purchased Edge Petroleum (NASDAQ: EPEX). In celebration of the accuweather.com forecast:
While temperatures may improve slightly over the weekend and early next week, it'll continue to stay below normal. By the middle of the next week, another round of harsh cold may be around once again because yet another arctic blast is headed down the pipeline.
After my worst year ever in the stock market, things are finally looking up. The prices of gas stocks hasn't risen yet in response to the coming big gas withdrawals.
You would think that if the market were efficient, this would already all be factored into the stock prices. But somehow they aren't.
Why do you respond to weather by buying companies instead of commodity futures?
In the past you've said you do it because these companies are leveraged because they have non-operating sources. But is a week's notice enough for them to start them?
More generally, have you done commodity speculation based on short-term weather before?
Posted by: Douglas Knight | February 09, 2007 at 07:27 PM
Why worry about it so much? There is nothing wrong with being active in your investments, but if you want to really build wealth, don't horse around with gas. Invest like the rich! Two days ago we started a blog called Invest Like The Rich that discusses how the rich invest. Not that I think you shouldn't play around a little in speculation, but don't rely on it.
Posted by: Invest Like The Rich | February 10, 2007 at 01:10 PM
Yeah, you are nuts. I hope you have at least $400,000 in net worth because I wouldn't put more than 5% of my portfolio at risk playing around with individual energy stocks. Especially not based on today's weather.
Posted by: Noumenon | February 18, 2007 at 05:48 PM