Crosstex Energy, Inc. (NASDAQ:XTXI)

devilinside (75.19) Submitted: 4/30/2009 7:28:46 PM : Start Price: $2.53 XTXI Score: +364.56

XTXI has made the right moves at the right time to bring their balance sheet into perspective for the current economic conditions. They have excellant proven resources in all the right locations. They provide a high quality service to other producers as well. Demand for NG will grow rapidly. Increased use for the auto industry and power production will increase 2x over the next 10 years. And that may be conservative.

Cons: Winter is over so home heating use will be down over the next 7 months. Industry production that relys on NG is also down. So in the near term NG demand will be down until Industry and Home heating use return again.

Pros: With NG being one of the cleanest burning fuels available, new power plants using NG will be built (especially in areas nearest NG production) to handle the increased demand for power in the coming years. The price of oil will rise again and thereby push NG back into the limelight as an alternative fuel for the auto industry. Gov't regulations will also push this aspect along. Can you tell me of another fuel that is cleaner burning at the same cost in todays economy for the next 10 years.

I bought this stock for my portfolio at $1.69. I think the current price is still cheap, but I will wait to add to my position again in June when NG use will be at it's lowest level based on economics and seasonal considerations. If you are a long term investor entering this stock at a current price of $1.97 would be a good buy. Do so as a long position.