Jun 10, 2011

Posted by in Commodities | 0 Comments

Penny Stocks on the Rise

See which Penny Stock Sector is on the Rise

It’s June, temperatures and penny stocks on the rise could be Crude Oil climbing over the psychological $100 whole number yet again, oil companies are booking large profits.

Increasing higher sales are a good measurement to locate a well oiled, machine (Yes, pun intended) a good thing,  but sustaining sales growth is the key to spotlight the real status of the company. Three oil penny stocks on the rise companies who had the highest sales growth all.

After Wednesday’s disappointing OPEC meeting coming to a screeching halt mid-meeting, it’s no wonder why we are experiencing a snap-back rally in oil service and oil drillers the last 48 hours.

Although some members, including Saudi Arabia, will now be able to increase production by as much as the market needs which may ruffle some feathers along the line.

Russian stocks advanced to their highest in more than five weeks as oil gained on OPEC’s failure to agree on crude quotas boosted prices and after U.S trade deficit unexpectedly narrowed. As we see it, OPEC’s unease is Russia’s comfort. This in turn is spotlighting the center stage of oil penny stocks on the rise by many on Wall Street.

With China taking over sole possession as the Global leader regarding consumption of oil what is even more amazing is that China GDP is a mere 1/2 of what the United States figures reflect.

Which that being said, it is quite clear with China population growing as it is…Oil has only one direction to head going forward…Upward!

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Penny stocks on the rise – 3 oil drilling companies to watch

I would like to label them as oil penny stocks on the rise due to the fact that they are now priced at pennies on the dollar considering their upside potential from sales growth.

1) Vantage Drilling (AMEX:VTG) is impressive due to the fact that it had year-over-year sales growth of 114% during the last quarter. The company has reported $345 million in sales over the past 12 months and is expected to report $522 million in sales in the next fiscal year.

About Vantage: Vantage Drilling Company provides offshore contract drilling services to multinational oil and natural gas companies, government owned oil and natural gas companies, and independent oil and natural gas producers worldwide. It involves in contracting drilling units, related equipment, and work crews to drill oil and natural gas wells, as well as offers construction supervision services.

Many investors and traders alike are starting to take notice of these oil penny stocks on the rise.

2) Pioneer Drilling (AMEX:PDC) capitalizing from its own niche hence they had year-over-year sales growth of 78% during the last quarter. The company has reported $555 million in sales over the past 12 months and is expected to report $805 million in sales in the next fiscal year.

Pioneer Drilling Company has become a fan favorite for investors wanting to speculate on the hottest portion of the oil industry, exploring America’s wealth of shale deposits. Digging deeper, this supplier of contract land-drilling services to major oil and gas exploration and production companies says it is looking for international expansion, beyond the Latin America office that it opened in Colombia in 2007.

About Pioneer: Pioneer Drilling Company, through its subsidiaries, provides contract land drilling services and production services to independent and major oil and gas exploration and production companies in the United States and Colombia. The company’s Drilling Services division provides contract land drilling services to operators in Texas, Louisiana, Oklahoma, Kansas, the Rocky Mountain, and Appalachian regions; and in Colombia.

By comparison, the iShares Dow Jones U.S. Oil Equipment Index (NYSE:Arca:IEZ), while posting steady growth since last September, is up just 15 percent year-to-date in early 2011.

3) Petroquest Energy Inc (NYSE:PQ) PQ from a technical standpoint has deep support right under the $7 whole number and has pulled back from its $9.50 highs in April 2011 coming from $5.50 lows in November. This set up has set of the alarms for many Fibonacci followers as a 50% haircut from those highs are looked at as value and investors are taking notice.

The company has started to heat up as well as its share price, rising 23% since early 2011 pulled back from that price tag, the stock has continued to woo investors with a strong management team in place. One of the reasons that Thomson Reuters says that 8 of 14 analysts who follow PetroQuest call this one a buy currently. Certainly one to watch over the near term.

About PetroQuest: Petroquest Energy is an independent oil-and-gas company based in Lafayette, LA. that generates, explores, develops, acquires and operates oil and gas properties onshore and offshore in the Gulf Coast Basin — in South Louisiana, Oklahoma, Arkansas and Texas.

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Steady rising revenue stream plus strong emerging growth towards sales is a smart template to use for gauging the consistency for a companies future guidance.

Be sure to watch them closely, they may surprise you. These oil penny stocks on the rise will fit in well for value investors looking for a safer, risk/reward ratio in bulls favor on a swing long trade.

Make sure you make it your business to do extensive research, after wards if your investments requirements meet or exceed these undervalued investment trading vehicles…there may very well be a profitable trade idea awaiting in your immediate future!
This is your Captain signing off for now….Trade wise, Trade well and most importantly stay on board the StockRunway!

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