Saul,
You’ve previously listed GTLS in your portfolio. Still an owner or no? I have not trained myself in all the proper and thorough points of analysis. However, it seems to me that their recent quarter is good, year was great, and prospects are excellent. Have you reviewed?
KLVanLiew
vanlieu,
I’ve been patient with GTLS and believe in natural gas, but I got tired of waiting, and reduced my position in GTLS by a third today. I may be selling at the bottom but growth just seems slow and painful.
Saul
Saul,
Thanks for the reply. I follow your board and appreciate your analysis, discussion, and instinct (if I may say so).
Didn’t GTLS report look good though? I understand that it has moved nowhere fast, but down, in the last several months. I will continue with the ‘patience’ mantra. I think NatGas will be profitable as the world turns over the next few years.
If you sold the bottom, I bought it for my mom. Here’s hoping it produces for her over the next 3-5 years.
KlVanLiew
“……growth seems slow and painful.”
Yes, it has and our investment results have been disappointing.
I live in the Permian Basin, right in the heart of the oil patch and have been practicing dentistry. I love picking the brains of patients that have intimate knowledge of energy trends and have their finger on the pulse of the oil and gas industry. I can tell you that the perspective from this part of the country is very bullish for natural gas for the next 5 years. The spectacular marriage of fracking and horizontal drilling technologies has made it possible for our country to supply the entire world with natural gas. However, transporting NG is incredibly hard. It must be liquified at extremely low temperatures. But there appears to be a huge demand worldwide.
A glance at the 5 year stock price of GTLS shows a nice growth record. It has only been since mid October since we’ve seen slower growth and disappointing earnings. However, GTLS is back logged with orders and the future appears bright. Increased regulatory restraints undoubtedly have played a role in some of the slow down.
Bottom line, I believe the world wide energy thirst will continue. I am holding GTLS and believe my patience will be rewarded.
JIm
Van, I’m holding a part of my GTLS position too for now, for the same reasons as you. The news wasn’t a disaster, just not very exciting: Revenue was flat year over year and sequentially. Earnings per share was also essentially flat year over year and sequentially. Backlog was up 16% year over year but down 2% sequentially. They acknowledged that the buildout of LNG infrastructure in North America is proceeding at “a modest pace compared to some of the estimates we created earlier in the year and our hopes.” Let’s hope it picks up.
Saul