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UNITED STATES NATURAL GAS F U ND , L P NYSE:UNG


Natural gas futures were climbing this morning on a report that U.S. gas stockpiles in the past week fell more than expected. Gas will start to rally in a big way during 2011 making UNG a stand out buy. Our price target is $10. The U.S. Energy Information Administration reported that natural gas inventories fell by 135 billion cubic feet last week, above than consensus estimates for a withdrawal of 128 bcf, according to Dow Jones Newswires.

United States Natural Gas Fund, the world’s largest exchange-traded fund in the fuel, signaled it may consider a reverse split if gas prices extend a decline. The $2.9 billion fund amended its limited partnership agreement to give its manager, United States Commodity Funds LLC of Alameda, California, explicit authority to implement a reverse split, the fund said in a Securities and Exchange Commission filing today. A reverse split reduces the number of shares of a fund or stock to boost the value per share. The U.S. Natural Gas Fund tries to track the performance of natural gas at Henry Hub in Erath, Louisiana, the delivery point for the future traded on the New York Mercantile Exchange. The fund has underperformed gas since it began trading in April 2007, declining 88 percent while gas is down 40 percent. The hub price retreated 27 percent in 2010 and the ETF fell 41 percent. “It is legally clearer now that the board could in fact order a reverse split,” John Hyland, the fund’s chief investment officer, said today in a telephone interview. “Depending on where the NAV goes in the near or medium or long term, we could see a situation where we could do a reverse split.” The fund isn’t targeting a specific price threshold for a reverse split, Hyland said. A low net asset value can affect a fund’s ability to attract new investors and may result in a delisting from certain exchanges. “There’s no line in the sand,” Hyland said. “The board will have to make a decision based on where we’re trading at a given time.”


United States Natural Gas Fund, LP (USNG) is a limited partnership. The Company is a commodity pool that issues limited partnership interests (units) traded on the NYSE Arca, Inc. (the NYSE Arca). The investment objective of USNG is for the changes in percentage terms of its units’ net asset value (NAV) to reflect the changes in percentage terms of the spot price of natural gas delivered at the Henry Hub, Louisiana as measured by the changes in the Futures Contract on natural gas traded on the New York Mercantile Exchange (NYMEX) that is the near month contract to expire, except when the near month contract is within two weeks of expiration, in which case the futures contract will be the next month contract to expire. The Company’s general partner is United States Commodity Funds LLC (the General Partner) and is responsible for the management of USNG. USNG invests in futures contracts for natural gas, crude oil, heating oil, gasoline, and other petroleumbased fuels that are traded on the NYMEX, ICE Futures or other United States and foreign exchanges (collectively, Futures Contracts). USNG also invests in other natural gas-related investments, such as cash-settled options on Futures Contracts, forward contracts for natural gas, cleared swap contracts, and over-the-counter transactions that are based on the price of natural gas, oil and other petroleum-based fuels, Futures Contracts and indices based on the foregoing (collectively, Other Natural Gas-Related Investments). USNG invests in Natural Gas Interests to the fullest extent possible. In pursuing this objective, the primary focus of the General Partner is the investment in Futures Contracts and the management of USNG’s investments in short-term obligations of the United States of two years or less (Treasuries), cash and/or cash equivalents for margining purposes and as collateral


Support/Resistance Type

Value

Conf.

resist.

8.26

2

resist.

7.15

3

resist.

6.77

4

resist.

6.65

2


resist.

6.52

3

resist.

6.40

2

resist.

6.26

6

supp

5.99

11

supp

5.77

7

supp

5.51

6

supp

5.27

2

Chart Indicators Ind.

short

Inter

Long

EMA

VBu

VBu

VBu

MACD

VBu

Bu

N

RSI

Bu

TDD

Be

Fibs

Bu

Be

VBe

Highs

VBu

VBe

N

Lows

N

VBu

N

Trends

N

N

N

Stoch.

VBe


Contact Details: Chutinush Taksinapinunt Business Development Director Heffernan Capital Management Email: chutinush@heffernan-inc.com Chutinush Taksinapinunt holds a Bachelor of Business Administrators degree Majoring in Finance and Banking. Chutinush Taksinapinunt is an experienced market maker and Portfolio Manager, having worked with some of Thailand’s largest Securities Company and Financial Institutions. Price Estimate by Shayne Heffernan PhD Shayne Heffernan of Ebeling Heffernan holds a PhD in Economics serves as CEO of Heffernan Holdings Inc and Co Founder of Ebeling Heffernan www.ebeling-heffernan.com Bangkok Suite 53 Athenee Tower 63 Wireless Road, Lumpini, Pathumwan, Bangkok 10330 THAILAND Tel: +66 2 126 8000 Fax: +66 2 126 8080 New York 347 5th Avenue, Suite 1402-508 Ny, NY 10016 Tel: +1 646-403-9881 Fax: +1 646-403-8014 Singapore 3 Raffles Place #07-01 Bharat Building Singapore 048617 Tel: +65 6329 6408Fax: +65 6329 9699


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