Good Morning, Trader!
Yesterday’s spotlight stock did so well that I went back to the oil patch and hit a potential gusher in the form of Gray Fox Petroleum Corp. (GFOX).
If you were looking for a slightly more “substantial” angle on the reviving energy theme, mighty $1 GFOX looks like it fits the bill!
But don’t let that lofty PPS intimidate you, because unlike a lot of “big” stocks, GFOX boasts one of my famous “blank check” charts:
Yes, those little blips and bloops of turnover was all the “technical” juice GFOX had to offer until just a few weeks ago. Blank chart, blank check!
No long moving averages to squelch price action! No trend to tell you what to do! No clunky indicators getting in the way of entry and exit!
But while GFOX gives traders all the space they need to “write their names on history,” blank chart does not mean blank balance sheet here.
GFOX has so much black gold to pump on its slice of Nevada shale that it just hasn’t had much time to issue a lot of puffy press releases.
Management keeps the SEC in the loop on every material event — but since Barron’s and CNBC aren’t covering GFOX yet, the stock is our little secret.
One day the amateur traders may get the news and this near-virgin chart will fill in. Until then, this is a very exclusive playground.
Speaking of exclusive playgrounds, if everybody knew about GFOX, its BILLION barrels of oil might not be trading down here at $1 a share.
Yes, that’s “b”illion with a “B.” A recent geologist report indicates that’s how much petroleum GFOX might have in its 32,000 acres of shale!
The formations here look ripe for fracking, which is probably why most of the big dogs of oil are lurking in the neighborhood. (Get the list)
It’s easy to ponder any of these petroleum giants snapping its balance sheet to buy GFOX, showering shareholders in M&A premiums in the process.
Exxon, for example, has 275 TIMES as much cash to spend as GFOX has in its entire market cap right now.
It’s possible, given the profound “high impact” nature of GFOX’s piece of the red-hot shale: 1 billion barrels for $1 a share!
And if GFOX chooses to go its own way with its 100%-owned field, traders who come in ahead of the crowd get to reap all the early rewards!
Remember, blank chart, big potential, blank check: that’s GFOX in a nutshell.
What more do you want from a Tuesday trade?
See you soon!