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natural gas stock pricing follow-up +2

11:57 30-May-18


Yesterday's note on CUI Global has already come true, with the announcement of a third $1.8M contract in the U.K.  That's about 8% of historical quarterly revenues, but there is no detail on when the sale will be realized.  CUI shares have bounced between 1 and 2% off the recent dip, but I think they have much more eventual upside. 

The same goes for WPRT, despite increasing (but still tiny) numbers of electric vehicles.  Both stocks could revisit recent lows and will require patience and volatility tolerance.  Neither is anywhere close to a sure thing and I don't think they deserve the same sort of portfolio weighting as the dividend payers (like CTL, tomorrow), but my sense is that potential reward strongly outweighs the risk.

A more timely reason for following up with a separate note is to convey my thoughts on CQH pricing, which is in the opposite situation.  Two weeks ago, I said I was in no hurry to sell of shares.  That changes now that they are 5% higher on low volume.  Market dynamics like this are almost impossible to judge exactly, but I think it's time to liquidate and possibly shift the funds into BGCP.