It's been a tough run for Liquefied Natural Gas Ltd (ASX: LNG) ("LNGL) shareholders over the last few months as a result of the oil rout and heavy shorting activity.
Following on from its meteoric 1,475% rise in roughly 10 months, the stock crumbled more than 57% as investors began to question the economic viability of the company's proposed LNG plant. The stock hit a low of $1.93 on Tuesday.
However, investors who sold at that price have missed out on a strong rebound with the stock having surged nearly 23% since then to trade at $2.36. It's been the top performing stock from the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) on what has otherwise been a rather bleak day for the market, which is down 0.4%.
It should be noted that while LNGL could be a very profitable investment in the long term, it remains a highly risky prospect today – particularly with oil prices tipped to fall even further in the coming 12 months.
