It seems lately energy stocks are getting more and more attention. Natural gas prices are rising, and the recent political turbulence in Russia is keeping crude oil prices elevated near $100 per barrel. And of all the penny stocks out there you can buy, we’ve found one in the energy sector that we need to keep an eye on…
Vaalco Energy (EGY)
Vaalco Energy is an independent energy company exploring, developing, and producing crude oil and natural gas. The company owns producing properties and conducts exploration activities in Gabon and Angola.
EGY is also exploring as a non-operator in the British North Sea and Equatorial Guinea, West Africa. Vaalco also acts as the operator of various resource properties in Montana, South Dakota, and North Texas.
And last week Friday their stock jumped from $5.98 to $7.25!
So why the big move?
EGY announced earnings that blew away both estimates and last year’s earnings. Analysts were looking for net income of $0.34 per share, and the company delivered $0.46 per share for the three months ending December 2013. During fiscal 2013, Vaalco delivered a total of $0.74 per share of net income.
That’s in comparison to the $0.01 of net income in 2012.
And Steve Guidry, Vaalco Energy CEO, advised progress on wells is being made in both Equatorial Guinea and Angola… where the company hopes to have 4 exploration wells drilled by the end of 2015. That means investors can get in now at penny stock levels as energy prices continue to rise and EGY builds production output…
As for the remaining company metrics, EGY has plenty of reasons investors should be taking a closer look at picking up shares of the stock. Here are a few highlights-
- Virtually no debt to speak of- which is outstanding for an independent oil and gas firm
- A forward P/E of just 6x… making this stock dirt cheap relative to it’s peers.
- Fiscal 2014 EPS projections of $1.14 per share
- Institutional ownership of 82% of the stock- which is a huge percentage!
- Just 6% of the shares are held short- meaning this stock isn’t on a short seller’s “A list”
And that’s certainly makes for yet another penny stock to watch…
Keeping you one step ahead,