Oil & Gas Stocks

As the U.S. strategic petroleum reserve (SPR) approaches capacity (721.5 million barrels filled out of a total possible 727 million, and will be filled by January 2010), the federal government will fade out of the oil-buying business. Some bearish traders believe that this factor can weigh in on prices, since most petroleum stocks in the United States are government-held rather than private. Bullish traders have also used the filling of the Chinese SPR as a reason that oil should go much higher.

Thank you, Wells Fargo. The S&P 500 ramped nearly 4% on Friday as Wells Fargo said it expects its first-quarter earnings to be nearly double what analysts were expecting. And it wasn’t even Wells Fargo’s earnings day - the company pre-announced earnings that will be released on April 22. These days, if you have something to crow about, you do it. ASAP.

 

I sure hope Daily Profit readers bought some shares of Graham Corp (AMEX:GHM) when I suggested it in the March 19 edition. Graham closed at $9.33 that day. Today, it’s pushing $11 a share for a 16% gain. 

 

What will be interesting is how stocks trade as we approach Inauguration Day in a couple weeks. It seems highly likely that a sizable percentage of Americans will anticipate the progress that the new administration has promised. And I’d expect some of that good will to carry over into the stock market.

The financial markets are the most dynamic of beasts. They give you something new and different to chew on every day. It’s a constantly shifting landscape. On a daily basis, you have to be ready to shift gears quick in response to trader’s fickle sentiment.

I think the first time it cost $50 to fill my gas tank was when it truly dawned on me that the relentless rise in energy prices could literally impact the quality of my life. About four years ago, one of the smartest men I've ever known asked me a simple question. His query? "Kevin, do you know how much I would pay to fill my car with gas?"

This week's investment idea is Mitcham Industries (Nasdaq: MIND), a leaser of the seismic equipment used to locate precious oil and gas reserves. Also, the latest market outlook from Supernova Stocks.

Small businesses are absolutely booming. Plus, an update on Bronco Drilling (Nasdaq: BRNC). And, Time Warner's (NYSE: TWX) Warner Bros. Home Entertainment Group announces an agreement to distribute Warner Bros. content through BitTorrent Inc.'s peer-to-peer system.

Is loading up on oil and gold a good idea?

Oil Hits Yet Another New High. Plus GE (NYSE: GE) used to be the harbinger for the U.S. economy, but now that role has expanded the role over. And, the cable industry touts bundling as its savior, but will "unbundling" prove to be the stronger force?

This week's investment idea is Dawson Geophysical (Nasdaq: DWSN), the leading provider of seismic data for oil and gas exploration and production companies. We also examine recent data that suggests that the housing market has slowed down substantially, and find out why Wal-Mart (NYSE: WMT) is the early winner in holiday retail.

Peter Henig looks at oil companies who are forced to defend their record profits.

What should investors do today with regards to oil and gas investments? Buy? Hold? Sell? Growth Report's new special report, "Oil Rush of 2006: Top Six Oil & Gas Stock Picks" aims to answer that question and presents six investment ideas for the new year. Big Idea Investor gives you a first peek inside the report. Also in this issue, we look at the success of and potential IPO for MLB.com.