Vanguard Natural Resources, LLC Unit (NASDAQ: VNR)
Vanguard Natural Resources is having an incredibly strong trading session in the market today. As soon as the opening bell rang, the stock quickly found its way into the green. From there, while we have seen a little downward movement here and there, the stock has held onto relatively impressive gains. Below, we’ll talk about what we’re seeing, why, and what we’ll be watching with regard to VNR ahead.
What We’re Seeing From VNR
As mentioned above, Vanguard Natural Resources is having an incredibly strong day in the market today. With the opening bell the stock quickly found its way to the green and in a big way. From there, the stock has seen a bit of movement, but nothing spectacular, other than the fact that it’s holding onto its gains of course. Currently (12:03), VNR is trading at $1.19 per share after a gain of $0.13 per share or 12.61% thus far today.
Why The Stock Is Gaining
The CNA Finance team has been tracking VNR for a couple of weeks at this point, since our partners at Trade Ideas brought the opportunity to our attention. The truth is that what we’re seeing from the stock today is simply a continuation of gains that we’ve seen recently, based on the same reason. Here’s what’s happening.
The gains are ultimately two-fold. First and foremost, Vanguard Natural Resources makes its money through natural gas. At the moment, winter is here, and as a result, demand for natural gas is headed up. So, the price is rising. Ultimately, this will lead to stronger profits for the company.
Another important factor with regard to the VNR run is the fact that Donald Trump is transitioning into office. Ultimately, Donald Trump has been clear about his beliefs toward US generated energy products. That’s great for companies like Vanguard Natural Resources and others that pull energy resources from United States soils.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on VNR. First, we’ll be watching for increasing demand in natural gas, which would increase price and look great on the balance sheet. On top of that, we’ll continue watching early moves made by President-elect Trump as these moves can change the landscape for the industry as a whole. Nonetheless, we’ll be keeping an eye on the news and updating you as it breaks!
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