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Friday, 02/04/2005 10:18:03 AM

Friday, February 04, 2005 10:18:03 AM

Post# of 173972
Some of my little energy stocks are perking up. Long term, I remain an energy bull and expect that over time domestic small producers will benefit the most from high energy prices.

Why?

Because at current and higher oil/ngas prices, there are many small fields/prospects that are profitable in terms of risk/reward. Competent companies can secure leases and drill successful wells. These little companies can hit one or two wells and really boost production on a percentage basis and boost cashflow and eventually eps.

Additionally domestic oil/gas will command a premium over time due to the lack of foreign terrorism and government takeover risk. Check the news from Venezuela as an example of how govts can screw overseas drillers.

Examples of tiny domestic producers who have a chance of big increases are aspn.ob,bsic.ob & fppc.ob. Stocks that aren't profitable yet but have a chance for future growth include egsre.ob, qrcpe.ob, stuof.ob. Apparently the "e" status is a requirement of these little companies.

Obviously I own the stocks I have mentioned but the method/assumptions could apply to any small domestic producer. Good luck. Bobwins

Please post stock symbols first in all your posts. If it's a foreign stock, please list the US pk equivalent symbol.

If the Commodities Boom is Over, I am just a Gold Bug headed for the Windshield of LIFE

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