NGAS - Sector: Energy --- Industry: Oil & Gas Operations

[akclide]

I know recently Ngas has fallen off everybodies radar,but I think it deserves a second look here.Production numers are good for the last qtr.I know that average price for gas was good for the qtr.Key is to see how trader see the intangible drilling cost which went up in the last qtr. and what will the forward looking statement be as the gas price have falle hard since January.Earnings are out after the close today.

[setravis]

AP
NGAS 4Q Profit Drops on Flat Revenue
Monday March 13, 5:07 pm ET 
NGAS Resources 4th-Quarter Profit Falls Short of Wall Street Targets, Shares Drop Aftermarket


LEXINGTON, Ky. (AP) -- NGAS Resources Inc. on Monday said fourth-quarter profit declined on weaker revenue from the company's core contract drilling segment, partially offset by a rise in sales of oil and gas.


The results came in shy of Wall Street's expectations, and shares retreated 54 cents, or 6.3 percent, to $8.03 in aftermarket electronic trading. The stock closed up 29 cents to $8.57 on the Nasdaq.

Earnings dropped to $564,145, or 3 cents per share, from $619,009, or 5 cents per share, in the year-earlier quarter. Excluding a $900,000 gain on the sale of a royalty interest in the 2004 quarter, NGAS would have posted a loss of 2 cents per share.

Sales were roughly flat at $15.7 million year over year, as revenue from contract drilling services slid 30 percent to $8.9 million.

Meanwhile, NGAS generated higher sales from oil and gas production, up to $5.7 million from $2.5 million a year ago. The company's production volume rose 41 percent to 509.5 million cubic feet of equivalent.

Analysts polled by Thomson Financial expected the company to post higher earnings of 5 cents per share on $19.5 million in sales.

Earnings in 2005 fell to $952,756, or 5 cents per share, from $1.61 million, or 10 cents per share, in 2004. The per-share results were affected by a rise in the number of shares outstanding to 19.1 million from 16.5 million.

Annual sales surged to $62.2 million from $48 million in the prior year.

NGAS provides contract drilling services and explores for natural gas primarily in the Appalachian Basin.

[setravis]

NGAS comes up short,fourth-quarter net income was $564,000, or 3 cents a share, down from $619,000, or 4 cents a share, during the same period last year.
The natural gas developer said quarterly revenue was $15.7 million, down from $15.73 million last year. Analysts polled by Thomson First Call had expected revenue of $20 million. 
Does look like it picked up nice support on the dip to the $8.00 area.

Support @ $8.53
Resistance @ $9.32...10.31...10.99

Technicals
MACD is Bearish.....may have bottomed out.
Stochastic is Bearish......way down in the oversold area.
Last Price Quote is:
-5.63%below 13-day EMA
-16.65%below 50-day EMA
RS Rating: 2 

Fundamentals
Reports Earnings
Earnings Expected on Mar 13

Key Data:
Market Cap (M): $165.27 
P/E Ratio: 146.16 
PEG Ratio: N/A 
Next Earnings: 05/11/2006
Last Analyst Rating: Buy

I know recently Ngas has fallen off everybodies radar,but I think it deserves a second look here.Production numers are good for the last qtr.I know that average price for gas was good for the qtr.Key is to see how trader see the intangible drilling cost which went up in the last qtr. and what will the forward looking statement be as the gas price have falle hard since January.Earnings are out after the close today.

[saffeysite1]

I donnot have time to post charts and all the goodies.  But in short, Nat. gas has bottomed out and so have all the small cap nat. gas stocks.  Look to get into:NGAS, CSPLF, SYNM and HAWK.

Also as an added bonus:  one beaten up oil rig stock that has hit bottom: PKD.

These are ready to start moving up.  The old saying "buy low and sell high". 

[REALDEALS21]

If this summer is HOT and the winter is COLD, natural gas will be @ $12 +++ 

[akclide]

I am not so sure about 12+++,although I have lot of investment in Nat.Gas I think we will be looking at 8-9 dollars per MCF going into summer.

[Holygrale]

I fully agree.......

ABP is the Nat gas play IMHO..............

Market experiencing some needed correction to the upside................Way oversold.

The good news is, the winners will prevail with consolidation and true earnings growth.....

So, the buzz is that ABP has hit the motherload in west texas, with recent insider buying, energy sector being really hot, a NAV of $9 and CK Cooper price target of $9............well lets just say, if the rumors are true...........see ya at $10.00+

[Ramsburg]

Profile: NGAS Resources, Inc., through its subsidiaries, engages in the development and production of natural gas in the United States. It primarily operates in the southern Appalachian Basin. As of December 31, 2005, the company had 73,253,992 thousands of cubic feet of proved natural gas reserves and 328,696 barrels of crude oil reserves. It also constructs and maintains gas gathering systems for its wells; operates natural gas distribution facilities for two communities in Kentucky; operates a gas gathering system connecting natural gas supply basins; and owns inactive gold and silver prospects in Alaska.
Website: http://www.daughertyresources.com
Market cap: 191M

Trading Idea:
NGAS was developing an ascending triangle for a while, and yesterday it breakout the top and resistance with volume 4X above average.
Yesterday's rally could be also explained by the strong rally on Natural Gas Futures, and expectations of a supply disruption on the Gulf of Mexico with the hurricane season. Nevertheless NGAS is usually very «technical» on its moves and its current chart pattern is very charming despite of the «official» rumours behind the move (Also, the Natural Gas Futures are currently in Bull mode).

From another technical perspective, NGAS had also a breakout of the long term descending resistance, and a few months ago tested the long term support near $7.00, this all combined gives us a great technical outlook for both the short an long term time frames, so we expect NGAS to begin a nice bullish swing over the next weeks.
We are buying NGAS today, even taking the risk of a throwback to the breakout area.

Trading Plan:
We'll buy NGAS today @ or near the open.

Regard,

[setravis]

Breaking out....
I think NGAS is going steadily higher.

Technicals
13-day EMA Cross Above 50-day EMA
Close Above the 50-day EMA
Percentage Gainer

Last Price Quote is:
9.99%above 13-day EMA
10.24%above 50-day EMA
RS Rating: 89 

Fundamentals
Earnings Expected on Aug 14

Key Data:
Market Cap (M): $171.15 
P/E Ratio: 301.25 
PEG Ratio: N/A 
Next Earnings: 08/14/2006
Last Analyst Rating: Strong Buy

[Ramsburg]

Update:
Interesting session, NGAS opened with a big gap up, closing the gap later and showing the necessary strength to close near the highs of the day and above the open (performing a Hammer Candlestick), volume was even higher than the day before, giving a special strength to this pattern.

Taking also in consideration that Natural Gas futures were down considerably during the session and the fact that NGAS managed to perform this climb, this gives an extra relative strength to the pot, and shows that yesterday's big move as not totally related with the Natural Gas picture which is good (Natural Gas Futures are already up +3.5% overnight anyway).

This hammer suggests continuation for the next session...lets wait.

Trading Plan:
Hold NGAS with a stop @ $8.20

Regards,

[magu]

"NGAS Resources, Inc. to Conduct a Webcast of Its Second Quarter 2006 Financial Results

--------------------------------------------------------------------------------
Wed Aug 02 09:33:09 2006 EDT
LEXINGTON, Ky., Aug 02, 2006 (BUSINESS WIRE) --
NGAS Resources, Inc. (Nasdaq: NGAS), today announced
that it will be releasing its second quarter 2006 financial results
after the market close on Tuesday, August 8, 2006. The full text of
the release will also be available on the company's website at
www.ngas.com. Management will host a conference call on the same day
at 4:30 p.m. (Eastern)."

rambsburg: are you going to hold  NGAS  through earnings?

[Ramsburg]

"NGAS Resources, Inc. to Conduct a Webcast of Its Second Quarter 2006 Financial Results

--------------------------------------------------------------------------------
Wed Aug 02 09:33:09 2006 EDT
LEXINGTON, Ky., Aug 02, 2006 (BUSINESS WIRE) --
NGAS Resources, Inc. (Nasdaq: NGAS), today announced
that it will be releasing its second quarter 2006 financial results
after the market close on Tuesday, August 8, 2006. The full text of
the release will also be available on the company's website at
www.ngas.com. Management will host a conference call on the same day
at 4:30 p.m. (Eastern)."

rambsburg: are you going to hold  NGAS  through earnings?

Hi magu ! Thanks for your input, I've been thinking about that, but I don't think we'll hold NGAS through the earnings (we'll probably sell Monday or Tuesday morning). In this case, the earnings are probably another catalyst for the current bull move, so even with good news we should expect the «sell the news» scenario or at least some crazy volatility.

Update:
Another interesting day for NGAS... after a strong open with another gap up, NGAS breakout another resistance (9.40, April's high) and was able to continue climbing making a new relative high at $9.75. At mid session NGAS was punched by some selling pressure, but near the close it was able to recover again to higher ground (NGAS was already up 1% in after hours trading), this behaviour combined with an even higher volume shows a lot of strength and momentum in this play.
At this time, we'll have a limit sell order in place at $10.50, the updated trading plan is:

Trading Plan:
Hold NGAS with a stop @ $8.20 and a Limit Sell order @ $10.50

Regards,

[tokyopua]

I am in at $9 now that there seems to be some recovery from the natural gas inventory numbers that were release about an hour ago.

[Ramsburg]

Update:
Big correction for NGAS today...
Technically speaking this should be a retest move to the breakout area (support near $8.60s) after the last 3 strong candles, which is normal. The Natural Gas Futures had also a considerable correction to the support area today.
We expect NGAS to hold above the $8.60s and get back up fast, we'll keep the same plan for now.

Trading Plan:
Hold NGAS with a stop @ $8.20 and a Limit Sell order @ $10.50

Regards,

[Ramsburg]

Update:
NGAS just retested the breakout level and the ema-200 at $8.60.

Trading Plan:
Hold NGAS with a stop @ $8.20 and a Limit Sell order @ $10.50

Regards,