Investors who resisted the temptation to sell their Liquefied Natural Gas Ltd (ASX: LNG) shares as the stock was plunging will be smiling from ear-to-ear today.
Despite the absence of any specific news (barring a five-day long rally in oil prices), the stock rose a remarkable 15.3% to record a new all-time high price of $4.59. After having more than halved in value between September 2014 and January 2015, the stock has since surged 138%. That compares to a 9.9% return from the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO).
Meanwhile, the stock is up 729.63% over the last 12 months, as can be seen in the chart below from Google Finance.
Even at today's price, Liquefied Natural Gas Ltd could generate strong returns for investors over the long-term, although there are considerable risks involved. As such, investors might want to hold off from buying until more clarity is provided regarding its Magnolia and Bear Heads projects, which could make or break the Liquefied Natural Gas Ltd investment thesis, or until the stock experiences another setback.
