Taking stock…some opportunities in equities

Greetings all!

Since this space is primarily focused on forex trading (when I’m not waxing philosophical), it’s not often that I discuss the more mundane world of the equities markets. But lately I’ve been adding more positions to my Fidelity account, so I thought I’d mention those here. First of all though, let’s dispense with the legal niceties…

Neither this post nor capitalisttrader.com in general recommends any investment. As always, do your own due diligence. The information below is for general informational purposes only, and is not to be construed as a recommendation, offer, or inducement to buy any of the securities mentioned. I may have positions in any or all of the securities mentioned below. In partcular, master limited partnerships (MLP’s) are investments with complex tax consequences. Always check with a qualified tax advisor when considering such investments. Finally, there’s no crying allowed in trading.

Back in this post, I mentioned that I had started a position in an ETF which holds global silver mining companies. I’m still holding that with a tidy profit, and have begun building positions based on a couple of other ideas as well. One cool thing that I just discovered is that Fidelity has added a nice little notepad feature for account holders. This is a place where you can jot down ideas tied to specific symbols or keywords. So that was part of the impetus that drove me to begin building these new positions (which was, I’m sure, the idea all along). So without further ado, on to the investments!

The first opportunity I see is long term growth in the liquified natural gas (LNG) industry. I often wrote about this in my articles for The Motley Fool, and here are some of the main drivers I see:

  • Supplies of LNG via shipping lanes, unlike static gas pipelines, can’t be easily shut off to an entire region like Europe by a bullying aggressor nation (yes, I’m looking at you, Russia).
  • Asian demand for LNG is driven by the lack of pipeline infrastructure, Japan’s move away from nuclear power, and China’s attempts to clean up its smog-bound cities.
  • North America has substantial quantities of natural gas, much of which is just flared off at the wellheads. This is the closest thing I can think of to just burning money. The prices for natural gas overseas, especially in Asia, are much higher than they are in the U.S.
  • The recently completed expansion of the Panama Canal makes it a lot easier to get LNG from the U.S. gulf coast to Asia.

So with all this in mind, I’m beginning to build positions in companies that produce and ship LNG. My two initial purchases were Cheniere Energy Partners (CQP) and Golar LNG Partners (GMLP). The first is building liquefaction facilities on the gulf coast, while Golar operates LNG ships. Also, I’m looking for tax-advantaged high current yield, so I like master limited partnerships (another topic I often wrote about for The Motley Fool). These MLP’s are generally found in the energy production and distribution industry.

Another big long-term opportunity I see is a massive new paradigm in industry brought about by 3-D printing technology. I think this will bring a new wave in the way we live on par with the impact of the internet. I haven’t bought anything here yet, but I’m looking at two companies that I made quite bit of money on a few years ago; 3D Systems (DDD) and Stratasys (SSYS). Not sure what I’ll be doing here yet, but I’m exploring both pure equity holdings as well as some options strategies.

So that’s the update on my recent forays into the equity markets. It’s nice to have some extra income to invest again! Until next time…keep pipping up!


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