If you believe that it's just a matter of time before Crude Oil is priced at $100 then stocks like Credo Petroleum will likely explode.
It's a junior exploration company with properties in Oklahoma and its production is 100% unhedged, this will likely be the real kicker should crude move stronger over the next several months. The company is very well run and has an excellent reputation not only among investors but also within the energy community. For example, Credo has been a regular top 100 place holder in Forbes & Fortune magazines 'Best Small Company' surveys.
If Crude does go to $100 we'd expect this stock to be priced at a minimum of $50 but if Crude slips back to $50 we wouldn't expect to see much downside. Wall Street still doesn't believe in the high oil price and has generally factored just $40 a barrel into the share price of most oil stocks.
Summary - In our mind plenty of upside potential in oil stocks, not a lot of downside.
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