Shares of Liquefied Natural Gas Ltd (ASX: LNG) have continued their remarkable rebound today, soaring another 40.2%. They’re now fetching $1.15, although they did hit a high of $1.185 not too long ago.
Incredibly, the shares have now gained 85.5% since Friday’s closing price, while they have more than doubled in price since Monday last week.
Indeed, the gains achieved over the last two days were off the back of no specific news coming from the company. In fact, management was even forced to respond to a speeding ticket from the ASX on Monday to which it said it was not aware of any reason for the recent trading activity behind its shares.
However, more questions may be raised today after the company released a presentation for its New York Investor Roadshow. Indeed, there has been a spike in trading volume since the end of May, indicating that someone has been buying heavily.
Still, investors need to be careful with LNG shares. LNG shares have rallied hard before, even hitting a high of $5 per share in April 2015 before plummeting back to earth. The fact is, there is still a high level of uncertainty about oil prices – and hence, liquefied natural gas prices – which could threaten the economic feasibility of LNG’s projects.
As tempting as it may be to buy LNG’s shares again, investors should remain wary of these risks and those investors who are more risk averse may want to consider other alternatives instead.