SSN/oil shales. There seems to me to be a circle of people who are avid followers of shale plays, especially penny stock plays. And so these plays are well-known among this group, and the same people are buyers of all or several of the stocks.
Some of these stocks have done quite well (so far), especially small e&p companies that control acreage in more than one hot prospective oil area. As I've said before, I believe the hot areas for oil are now Three Forks TX, and USA Bakken (including Saskatchewan Bakken). Coming up close behind for 2011 is Niobrara, as I've also suggested. Next (2011-2012)I'm guessing Cardium, but maybe it'll be Alberta Bakken too, or predominantly. A lot of prospective stuff here, and not a lot of public data on success or not of drilling so far (i.e. Alberta Bakken).
Anyway, my guess is people who are following these plays are figuring, why take a chance on one company in a hot or to-be-hot area, when you can buy a few of these companies that are in several of the areas at the same time. The potential of having a winner area might be increased for the company, and at least give the company some options on how and which hot area it might prioritize for development.
So you have the popularity of MHR, SSN, and others which are in multiple "hot" areas. I've eventually taken positions in every one of such stocks that I've been able to find. With some such as SSN, as the stock has moved up, I've increased my position. Not sure right now if I'll add more (rapid run-up in price past few days scares me).
I've been remiss on AXAS, one of these multiple plays, which I see now Dale Baker has begun a position in. I've mentioned AXAS before, and I'm grateful for my 2-3 bagger that I have in the year or so I've held shares. However, it's ultimately afaik about making money --- not making percentages, and I've just not been alert or aware or courageous enough to have acquired anything other than a very small $ amount of shares. Again, as I've suggested before, it's possible that shale stocks like these might run long-enough and up-enough to be VERY significant enhancers to portfolio values. --- I seem to have forgotten with AXAS and others that if someone wanted such gains for their portfolio, they'd have to establish positions that were more than just token.
I've reviewed AXAS now again, and given what seems to me to be its potential and involvement in these multiple shale plays, and its value (still well under 2p nav, according to the company), this is a shale stock I'll concentrate more on adding to now. Which I'm doing today. |
