deniseann
8 years ago
A Split Decision For This ETF's Holdings
Todd Shriber, ETF Professor , Benzinga Staff Writer
April 26, 2016 9:19am
http://www.wikinvest.com/wikinvest/api.php?action=viewNews&aid=7417531&page=Stock%3AFirst_Trust_ISE-Revere_Natural_Gas_Index_Fund_%28FCG%29&comments=0&format=html
Excerpt…
Read more: http://www.benzinga.com/trading-ideas/long-ideas/16/04/7881647/a-split-decision-for-this-etfs-holdings#ixzz4791RrKG6
Thanks in large part to rebounding energy commodities, namely oil, the once downtrodden and maligned First Trust ISE Revere Natural Gas (ETF) FCG is up 5.7 percent year-to-date. That is an especially performance showing when noting the United States Natural Gas Fund, LP UNG 3.05% is off nearly 19 percent and when recalling that FCG often lags its futures-based peer.
FCG holds 39 stocks, and in order for those companies to qualify for admission to the ISE-Revere Natural Gas Index (FCG's underlying benchmark), they must “derive a substantial portion of their revenues from the exploration and production of natural gas,” according to First Trust.
Related Link: Michael Bloomberg: U.S. Can Meet Paris Climate Goals (With Or Without Supreme Court)
Honing In On FCG
Tumbling oil prices drained the financial positions of an array of mid- and small-cap shale producers, prompting scores of credit downgrades and sparking concerns over a spate of defaults. Lenders to some of the companies found in FCG are refusing to extend further credit to those firms.
In fact, some banks that lend to shale producers are tightening liquidity requirements, which could be seen as a sign these lenders don't want to be left with nothing if their borrowers go bankrupt.
However, many of FCG's member firms have significant oil exposure, such as top 10 holdings Hess Corp. HES 0.15%, Anadarko Petroleum Corporation APC 0.11% and Marathon Oil Corporation MRO 0.88%. What that means is the ETF can benefit from rising oil prices, as evidenced by its recent rally, but natural gas exposure remains a concern.
deniseann
8 years ago
Thu, Apr 28, 2016, 1:22pm EDT - US Markets close in 2 hrs and 38 mins
1 for 5 Reverse Split announced
First Trust ISE-Revere Natural Gas Index Fund
Announces Reverse Share Split
Business Wire First Trust Advisors L.P.
April 22, 2016 4:23 PM
WHEATON, Ill.--(BUSINESS WIRE)--
First Trust Advisors L.P. (“First Trust”) announced today that the Board of Trustees (“Board”) of First Trust Exchange-Traded Fund (the “Trust”), on behalf of First Trust ISE-Revere Natural Gas Index Fund (the “Fund”), an index-based exchange-traded fund (NYSE Arca: FCG) approved a 1 for 5 reverse share split.
The reverse share split will result in every five outstanding shares being converted into one share, thereby reducing the number of shares outstanding. Fractional shares will be paid out in cash to the beneficial shareholder. Once the reverse share split is complete, each shareholder’s account will reflect one-fifth fewer shares with a net asset value per share that reflects the combined shares. The Fund’s shares will continue to trade under the same ticker symbol, FCG. The Fund’s current CUSIP number 33734J102 will be replaced by a new CUSIP number, 33733E807. First Trust currently anticipates the reverse share split will be effective as of the opening of business on NYSE Arca, Inc. on or about May 2, 2016, subject to all regulatory requirements and other conditions being satisfied.
The Fund launched on May 8, 2007. The Fund’s investment objective is to seek investment results that correspond generally to the price and yield, before fees and expenses, of an equity index called the ISE-REVERE Natural Gas Index™.
First Trust Advisors L.P., the Fund’s investment advisor, along with its affiliate, First Trust Portfolios L.P., are privately-held companies which provide a variety of investment services, including asset management and financial advisory services, with collective assets under management or supervision of approximately $96 billion as of March 31, 2016 through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separate managed accounts.
You should consider the investment objective, risk, charges and expenses of the Fund before investing. The prospectus for the Fund contains this and other important information and is available free of charge by calling toll-free 1-800-621-1675 or visiting http://www.ftportfolios.com. The prospectus should be read carefully before investing.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160422006066/en/
Contact:
First Trust Advisors L.P.
Press Inquiries: Ryan Issakainen, 630-765-8689
Broker Inquiries: Sales Team, 866-848-9727
Analyst Inquiries: Stan Ueland, 630-517-7633
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deniseann
8 years ago
I entered FCG a couple of years ago at like $22 a share... Of course, we all know the story about recent oil and gas... The etf intrigued me though, so continued to watch it... As it went down, I kept buying, looking for a bottom... I finally averaged at about 3.50 or so, when the stock was down to about $3.26...
At a low of about $3.30 the end of February, the stock finally started improving...
Today it reached $5.00 a share... Its kind of a sleeper stock, but on a long shot, it simply seems to keep going up...
Timothy Smith
12 years ago
The fund's 10 major holdings are $KWK $PVA $UPL $BBG $COG $SWN $XCO $EQT $QEP $CRK. Stocks included in FCG have strong future growth prospects. Ultra Petroleum (UPL) has a strong revenue base, good reserve replacement ratio, and efficient costing.
The use of commodity hedging also bodes well for the company. The company has hedged around 70% of its total annual expected output at an average price of $4.42/MMbtu. Penn Viginia (PVA) has the second highest proportion in the fund. The stock has attractive valuations and can growth through organic channels.
It is trading at P/S of 0.92x, at a discount when compared to Cabot Oil & Gas Corporation (COG), Chesapeake Energy Corporation (CHK) and EQT Corporation (EQT), with P/S of 8.86x, 1x and 5.4x, respectively.
OilStockReport
13 years ago
Natural gas markets aren’t moving much today despite predictions that weather will be colder than expected in early December.
A possible reason pointed out in the Bloomberg article is that earlier this week inventory forecasts aren’t giving traders much room to believe a pick-up is near.
“We still don’t see clear-cut government data that support strong industrial demand,” Michael Rose, director of trading at Angus Jackson Inc., told reporter Moming Zhou.
The United State Natural Gas Fund (UNG) was down at 12:45 p.m. eastern time today by 0.25% while the First Trust ISE-Revere Natural Gas Index (FCG) dipped 0.77%.
UNG had returned -39.9% for the year heading into today, according to Morningstar. At the same time, FCG’s focus on stocks rather than spot futures prices had it generating a 3.9% positive return.
Leading names in FCG include Anadarko Petroleum (APC) and Newfield Exploration (NFX). The former had gained more than 40% and the latter 28.9% so far this year.
Both were trading down around 1% late in today’s session.
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stocktrademan
8 years ago
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