EOT trade alert May 30, 2014

| May 30, 2014

May 30, 2014

Trade Alert:

Buy GLOG August 2014 $25.00 Calls at $1.50 or better

Company Background:

GasLog (GLOG) owns and operates a fleet of liquefied natural gas (LNG) carriers.

Short-Term Catalyst:

GasLog is one of my favorite companies for several reasons.

First off, they operate is an industry that’s undergoing a major transformation.

Natural gas is fast becoming the energy source of choice for electricity production.  It has replaced coal and nuclear because is cheaper, safer, and better for the environment.

Today’s state of the art electricity production is a mix of solar, wind, and natural gas.

And natural gas is set to take on an even bigger role as nuclear power is phased out because of the catastrophic risks this technology poses to the environment.

The biggest hurdle natural gas has faced is the difficulty of transporting it.  In the past, you simply had to be able to connect the source of natural gas with areas it’s needed for energy production with a pipeline.

This made using it in places like Japan and other countries without a readily available source of natural gas a major problem.

Advancements in technology are now overcoming this obstacle.  Today, natural gas can be cooled and liquefied into a state where it is economical to transport it via huge carriers.

In fact, the US is set to begin liquefying and exporting natural gas overseas for the first time ever in the next few years.  And the growth in this industry is going to explode over the next decade.

That’s where GLOG fits in.  This is a well managed company that’s connected to the right people to take advantage of this growth.

In fact, the company’s profits have surged 160% over the last year.  Their business model of growth through acquisitions, new ships, and long term contracts is working like a charm.

In the most recent quarter, GLOG came up short of expectations and the stock has pulled back off the recent highs.  This looks like a great buying opportunity to me.

Let’s grab call options on GLOG now to profit from the next upswing.

Trade Details:

Underlying Stock Symbol: GLOG
Current Bid-Ask Price: $1.10 – $1.45
Option “Buy Up To” Price: $1.50
Break-Even On Stock At Expiration: $26.50
Maximum Risk Per Contract: $150


Exit Strategy:

GLOG is trading at $23.50 per share.  Resistance levels will be at $28.00 and again at $30.00.  Remember, we want this stock to move higher.  Support levels will be at $20.00 and $19.00.  Conservative investors should look to exit at the first support or resistance level.  Aggressive investors may want to hold for a bigger move.



Category: EOT Trade Alert

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