This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Natural Gas Bill Could Be Stock Bonanza

Stocks in this article: WMT UPS CHK CLNE RRC

According to studies, the bill could also create 400,000 jobs, and some politicians will no doubt seek to score political points by attaching their names to it in this dismal labor market.

On the other hand, with most Americans fed up with government spending and clamoring for budget cuts, this is the worst possible time to ask for $5 billion in new handouts, regardless of how they will be put to use.

But there are some highly influential people behind the development of natural-gas-based vehicles, including House Speaker John Boehner (R., Ohio) and President Barack Obama (unlikely allies on this one). Even some Tea Party members (the most ardent and vocal budget-slashers) are on board, including Rep. John Sullivan (R., Okla.), who introduced the bill.

The cynical might say that some of those votes have been bought (62 companies lobbied for the bill's passage last quarter, handing out a reported $25.3 million in the process).

I'm not here to weigh-in on the bill's political merits, just to comment on how this might play out for investors. By my score, the bill will pass through the House without too many roadblocks, although it could get bogged down in the Senate once again.

But there is certainly room for compromise. And with ethanol subsidies all but flat-lined, I think CNG will step in and soak up some of that support.

Action to Take: Many stocks tied to natural gas have rallied -- not because the government might sweeten the proposition, but because it hasn't had to. The private market has already made several bold investments on its own, including Chesapeake's (CHK) $1 billion venture with Clean Energy Fuels (CLNE) and other partners.

That free-market spending speaks volumes.

Should the government lend its financial support, some experts believe there could be as many as 350,000 NGV trucks on the nation's highways within the next few years, spending $3.5 billion on natural-gas derived fuels each year.

The Nat-Gas Act will undoubtedly face tough opposition. But even without it, I see much stronger demand for natural gas on the horizon (I gave readers of my Scarcity & Real Wealth newsletter six or seven iron-clad reasons why recently. Click here to find out more.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs