Coming quarters will show improved earnings from the oil and natural gas price recovery already seen. Fireworks are likely if we have a cold winter. Esenjay stands out as a bargain right now. The company has not gotten credit for its string of successful wells. At some point the market will realize that substantial reserves have been added.
More successes are likely as a number of strong prospects remain to be drilled.
We have passed through the traditionally worst month of the year and the worst six months. However, we are now in tax-selling season, when poor performers get dumped for tax losses. This is almost always a great time to buy. But we may have to endure some more lumps for our laggard stocks before they recover. We were stopped out of Webb Interactive and are giving up on two other issues.