MENU

Why the Liquefied Natural Gas Ltd share price plunged 16% today

The Liquefied Natural Gas Ltd (ASX: LNG) share price has been absolutely crushed today, falling 16.4% and making it the worst-performing share on the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO).

Followed closely behind LNG Ltd are Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO), down 16% and 13.1% respectively, following a horror night for oil prices.

LNG Ltd’s share price is now sitting at just 94 cents which is the company’s lowest share price since June 2014.

If you own shares of Liquefied Natural Gas, you might want to look away now…

Source: Google Finance; One-year LNG Ltd share price chart

Source: Google Finance; One-year LNG Ltd share price chart

Shares of LNG Ltd have now fallen more than 81% since they peaked at $5 in April this year. As oil and liquefied natural gas prices continue to deteriorate, LNG Ltd is becoming an increasingly risky investment prospect and one that ‘Foolish’ investors would be wise to avoid, for now.

NEW: The Motley Fool's Top Fully Franked Dividend Share For 2016

Forget the energy sector. This "dirt cheap" company. is growing like gangbusters, and trading on a 5.6% dividend yield, FULLY FRANKED (8% gross). With interest rates set to stay at these low levels for years to come, for income-hungry investors, including SMSFs, this ASX company could be the "Holy Grail" of dividend plays for 2016.

Click here to gain access to this comprehensive FREE investment report, including the name of this fast growing ASX dividend share.

Motley Fool contributor Ryan Newman has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. You can follow Ryan on Twitter @ASXvalueinvest.

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.