UNG

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fishbone
Posts: 115
Joined: Wed Oct 21, 2009 11:19 am

UNG

Post by fishbone »

Today it appears that UNG is up almost 300%. This is the reason...

"On February 21, 2012, after the close of trading on NYSE Arca, Inc., United States Natural Gas Fund, LP (the "Registrant") effected a four-for-one reverse unit split and post-split of the Registrant began trading on February 22, 2012. The Registrant previously announced the reverse unit split in its press release dated February 1, 2012. As a result of the reverse unit split, every four pre-split units of the Registrant were automatically exchange for on post-split unit. Immediately prior to the reverse unit split there were 174,297,828 units of the Registrant issued and outstanding, each representing a net asset value ("NAV") of $5.51. Immediately after the reverse unit split the number of issued and outstanding units of the Registrant decreased to 43,574,457, not accounting for fractional units, and the NAV relating to each unit increased to $22.04. In connection with the reverse unit split, the CUSIP number of the Registrant's units changed to 912318201. The Registrant's ticker symbol, "UNG", remains the same. "

Can somebody please explain this to me? I don't understand it. Does this mean that if I had four shares of the stock yesterday worth $5 each that today I would have one share worth $20? Or would I have four shares worth $20 each and have made a lot of money?

rfalcan
Posts: 84
Joined: Fri Jan 29, 2010 9:37 pm

Re: UNG

Post by rfalcan »

The short answer - the value of your account does not change only the number of shares you own. Yesterday you had 4 shares at $5 per share = $20. Today you own one share @ $20 dollars per sahres = total $20. In today’s market you will see more of this because it gives the impression to investors that the value is higher. When city was a $4 they did a 1:10 split bringing the price of each shares to $40 dollars. Now it's at $32 but after the split it went down from $40 to $20. Another reason companies do this is to stay listed on the index like S&P500. Hope this helps

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Winner
Posts: 621
Joined: Wed Jan 06, 2010 10:40 am

Re: UNG

Post by Winner »

I haven't seen any stock that has reverse split when up. If I owned this stock, then I will sell it right away and short this one. Similar to C 1:10 split on May 9, 2011.
“A brave man knows the circumstances and consequences of what he may encounter ahead…..but moves forward anyway.”

fishbone
Posts: 115
Joined: Wed Oct 21, 2009 11:19 am

Re: UNG

Post by fishbone »

awesome... thanks for the info!!!

crondanet5
Posts: 4330
Joined: Tue Aug 19, 2008 8:51 pm

Re: UNG

Post by crondanet5 »

I looked back 6 months at UNG and folks that reverse stock split was the most exciting thing that has happened to UNG in that time. Unfortunately, like CITI, the chart bodes poorly for UNG's future direction. fishy, I suggest caution.

fishbone
Posts: 115
Joined: Wed Oct 21, 2009 11:19 am

Re: UNG

Post by fishbone »

I was looking at it for a while just because I was expecting it to do something but in that time I have learned enough to stay away... thanks for confirming that...

crondanet5
Posts: 4330
Joined: Tue Aug 19, 2008 8:51 pm

Re: UNG

Post by crondanet5 »

Look for a stock that gyrates 20 cents a share per day, buy low, sell high, say a thousand shares.....

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Jahbulon
Posts: 3901
Joined: Wed Nov 17, 2010 1:22 pm

Re: UNG

Post by Jahbulon »

On that No Hype Live broadcast last night Nick Santiago said hold the UNG with a stop loss at $20. He said the chart looks good and it wants to go higher, but use the stop loss to protect yourself.

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Winner
Posts: 621
Joined: Wed Jan 06, 2010 10:40 am

Re: UNG

Post by Winner »

Jahbulon wrote:On that No Hype Live broadcast last night Nick Santiago said hold the UNG with a stop loss at $20. He said the chart looks good and it wants to go higher, but use the stop loss to protect yourself.


Yet, it looking good as after split it went up to $22.50 and current trade at $18.74. After I sold some of my option I will have to open butterfly put option (to save some premium) in either April or May. Be realistic if the stock is good it will not lost its value, then it's not require to reverse split. It will go up eventually, but not now it will took for years to come if it still around.
“A brave man knows the circumstances and consequences of what he may encounter ahead…..but moves forward anyway.”

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Fund Prices2024-03-28

FundPriceDayYTD
G $18.15 0.05% 1.05%
F $19.08 -0.06% -0.74%
C $82.21 0.11% 10.55%
S $82.43 0.30% 6.92%
I $42.57 -0.24% 5.95%
L2065 $16.38 0.02% 8.37%
L2060 $16.39 0.02% 8.38%
L2055 $16.39 0.02% 8.38%
L2050 $32.73 0.01% 6.95%
L2045 $14.91 0.02% 6.58%
L2040 $54.38 0.02% 6.22%
L2035 $14.34 0.02% 5.79%
L2030 $47.67 0.02% 5.38%
L2025 $13.15 0.03% 3.43%
Linc $25.61 0.03% 2.82%

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