As promised, our momentum play is BPZ Resources, Inc (BPZ). If you are reading this email for the first time, stop what your doing and get it on your screen now or you may just miss out.
BPZ has been crushed recently along with all other oil and gas companies. Add in a high short interest and it has been decimated, falling from over $3 just a few months ago, all the way down to below $0.30.
Yesterday it saw it a nice uptick on the day, and we think this momentum will continue today.
In fact, BPZ has a short interest of over 20%, so if the momentum higher continues, there could be a nice short squeeze and short sellers are forced to buy back the stock to cover their positions.
We think $0.50+ is definitely a possibility. That would represent a 67% gain from yesterday’s closing price.
BPZ focuses on the exploration, development, and production of oil and natural gas in Peru and Ecuador. It owns license contracts for oil and gas exploration and production covering approximately 1.9 million net acres in 4 blocks located in northwest Peru and off the northwest coast of Peru in the Gulf of Guayaquil.
The company also owns a 10% non-operating net profits interest in the Santa Elena property, an oil and gas producing property located in the southwest region of Ecuador.
As of December 31, 2013, it had estimated net proved oil reserves of 16.1 million barrels of crude oil or other liquid hydrocarbons (MMBbls), including 12.7 MMBbls were in the Corvina field and 3.4 MMBbls were from the Albacora field located in northwest Peru.
We think there is a very good opportunity to trade the bounce higher as momentum traders pile in and short sellers cover.
Get BPZ on your screen now and make sure you watch it all day for opportunities to trade the dips.
As always, be careful of any large gap ups. Wait for pullbacks and confirmed momentum higher.
Penny Stock General