February 11, 2014 (DJIA 15,801.79, S&P500 1,799.84) Weather is certainly having an economic effect in America during Winter 2013/2014
Historically weather has been used as a poor excuse for companies performing poorly. Many analysts and news media are criticizing these companies, and suggesting they are using a text book type old excuse. I think that weather in the late December through today has been a valid reason for many companies reporting reduced sales and profits (e.g. Walmart). We have certainly had a cold January and so far February on the East Coast. On the same token, natural gas prices have risen since mid November 2013, and this could lead to unexpected higher profits for certain utility companies. During the fourth quarter of 2013, natural gas prices averaged around $4.00, with a low near $3.50 and a high near $4.50. During 2014, the low was around $3.90, went as high as around $5.70, and is priced at $4.76 today. Natural gas was priced over $13.00 in 2008. Utilities typically base their regulated rates on the price of natural gas.
As always, we welcome the opportunity to discuss our outlook and investments with you.
Please feel free to contact me with anything you would like to discuss. Feel free to ask general questions on our Facebook page as well
Ronald R. Redfield cpa, pfs
Redfield, Blonsky & Co. LLC
15 North Union Avenue
Cranford, NJ 07016-1103
908 276 7226 phone
908 276 7274 fax
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