Golar LNG

Traders should concentrate all their long bets in the transportation sector around international shipping and avoid any stocks dependent on domestic traffic. One name that we find interesting here is Golar LNG , which is an international liquefied-natural-gas shipper. The company has seen an upswing in business and shipping rates from Asia.

Golar LNG

Click here for larger image.

GLNG has recently broken out of consolidation formation and surged higher. What looks interesting in this chart is the bullish continuation pattern off of the spike in the stock last week. This suggests that GLNG may be getting ready to make another push to the upside. It has moved quite a bit in the last month, so conservative investors may want to sit this one out, but traders who are looking for an aggressive play should consider GLNG at these level

Golar Enters Lucrative Market

September 21, 2007: 08:05 PM EST

Sep. 21, 2007 (Investor's Business Daily delivered by Newstex) --

Transporting fuel overseas takes special equipment and handling skills, so experience matters. Golar LNG (NASDAQ:GLNG) GLNG has been offering its marine transportation services for more than 35 years.

The Bermuda-based firm traces its roots back to 1946, when Gotaas-Larsen Shipping was founded. It entered the liquefied natural gas (LNG) business in 1970 after being acquired by Osprey Maritime.

World Shipholding now owns a majority stake in Golar. It first started buying the company in 2000.

The shipping firm has been expanding into more lucrative markets. Golar recently signed a contract with Petroleo Brasileiro (NYSE:PBR) PBR, then converted two of its LNG carriers into floating storage and regasification units (FSRU), which command a much higher day rate than traditional shipping.

The day rate for FSRU is more than $100,000 vs. $65,000 per day for traditional shipping services, according to Friedman Billings Ramsey, which began covering Golar earlier this month with an outperform rating.

Branching out may serve the company well. Two companies, U.K.-based BG Group (NYSE:BRG) BRG and Indonesia's Pertomina, made up more than half of Golar's 2006 revenue with six long-term contracts.