PDC and Natural Gas

I must admit getting a little worried over PDC lately. What will happen to the stock if we have a mild winter combined with our current record natural gas reserves in storage?

While natural gas prices have climbed from $5.15 to almost $7, the stock has fallen from $15 to under $13, and is now around $13.50. The first chart in this article gives me renewed confidence that my pick, while scary, should be exciting as well. Adam Hamilton says that while natural gas is in a secular bull market, "the fear permeating gas today is overpowering and universal."

Time to buy.