Look Past The Choppy Near Term, And Chart Industries Looks Appealing

There’s no “one size fits all” approach for reconciling choppy short-term trends with more exciting long-term drivers, but I find these situations can often lead to above-average investment gains for the patient investor. Chart Industries (GTLS) definitely has some near-term risk to lower natural gas-related spending in the upstream and midstream markets it serves, and some industrial cycle risk as well, but I believe those short-term risks pale next to the long-term opportunities in LNG, alternative fuels, and new end-markets.

I’m pretty bearish on U.S. onshore oil & gas spending, but I’m not sure the market is yet and that is my biggest near-term concern with Chart Industries. Longer term, I’d highlight the risk of political action against large-scale LNG exports from the U.S. as a key concern, even if it is not particularly likely. Even with those risks, though, I think the long-term opportunity is pretty interesting; it’s a pretty easy call at $60 and even here closer to $65, I still like Chart as an idea in 2020.

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Look Past The Choppy Near Term, And Chart Industries Looks Appealing