Energy / Gas Sector
The energy sector seems to be attracting plenty of talk at the moment, with some recent gains.

So as we are constantly looking for a better stock, I suppose we need to look at them.
But from experience the small end of the sector has been full of despair for me!

Doesn't seem to matter what they dig for, oil, diamonds, gas, gold, rare minerals.
They seem to borrow the money to dig the hole, sell the stuff ,to pay the bank, to borrow the money to dig the new hole, sell the stuff,  to pay the bank, to borrow the money, yada yada yada.
That's if there lucky enough to find anything, if they don't they go back to the shareholders for a capital raising, as the banks had enough of them!
If the shareholders' lucky he gets his money back and is supposed to be thankful!! you don't seem to see too many dividends, so why would you even look at them. Add in some fracking and some environmentalists, and you should run for the hills before touching!!
Maybe im cynical, but its supposed to be a grumble!
But the lure of big capital gains brings us back to be suckered in all again.

Charles Morris in Comeback previously mentioned is well worth reading if you still want to risk your hard earned cash in the sector.

Morris makes a good point, oversupply of gas as early as 2012, gas prices went down to $2 per thousand cubic feet, that's about the same as crude at $12 a barrel.
Price has since recovered, but you would want to be in production now and profitable, with big leases that had a lot of potential  to survive.

That's a big ask, just looking through the list there a lot of them, so will have to be some rationalisation(read pain) going forward.
Who's will be left, probably only the big ones, but most fully valued, leaving us with who might survive out of the smaller caps.

BRU.AX Buru Energy
Has a lot of debt, and still cash flow negative, so not for me, but nice jump yesterday.
https://www.google.com/finance?q=ASX:BRU


SEA.AX Sundance Energy
https://www.google.com/finance?q=ASX:SEA
Doesn't seem to have much debt, and is making a Dollar, nice jump yesterday might be worth a punt?

Remember DYOR
I have no idea!!

Performance
Code	Buy date	buy price	current	Sell Date	Sell price	Profit(loss)
EPW	21/05/2014	$1.905	$1.910			0.05%
CRZ	23/05/2014	$10.530	$10.490			-0.40%