Up 61% in 5 days: Is Liquefied Natural Gas Ltd a bargain?

Credit: Steve Jurvetson

Liquefied Natural Gas Ltd (ASX: LNG) shares are up 17% today, and 61% in five days.

Source: Google Finance

Source: Google Finance

In fact, just this week (during only two days of trading), LNG Ltd’s share price has risen 37%.

LNG Ltd shares appear to have rallied without reason. In fact, the company was issued with a ‘speeding ticket’ yesterday, asking it to detail if there was any material reason why its shares might be rallying.

The company said it was not aware of any information.

Nonetheless, it appears someone is buying because there has been a significant lift in volume since the end of May. Between May 26 and June 6, the daily volume of shares changing hands jumped from 2 million to more than 10 million.

Are LNG Ltd shares a bargain?

This isn’t the first time LNG Ltd shares have rallied. This time last year they changed hands for more than $4 after a tremendous run-up in price. However, the subsequent fallout in world oil prices sent the company’s share price to a low of just $0.46 in April.

Indeed, despite their recent falls and rally, LNG Ltd is yet to provide investors with certainty that its two North American tolling projects will get off the ground. In turn, this likely makes any share price rally unsustainable.

Forget LNG Ltd, if you like growth + dividends, you'll love the stock The Motley Fool's expert analysts hand-picked as their best dividend share idea for 2016.

Indeed, our resident dividend experts named their Top Dividend Share for 2016, and not only are the shares dirt cheap, the company is growing and trading on a 5.6% fully franked dividend yield. Simply click here to gain access to this comprehensive FREE investment report, including the name of this fast growing ASX dividend share. No credit card required!

Motley Fool Contributor Owen Raszkiewicz owns shares in LNG Ltd. Owen welcomes -- and encourages -- your feedback on Google+, LinkedIn or you can follow him on Twitter @ASXinvest.

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.