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By Timothy Lutts

Today’s tip is about an unknown stock with big growth potential.

It’s Cimarex Energy (XEC), and here’s what editor Michael Cintolo wrote about it in a Cabot Top Ten Report three weeks ago.

Cimarex Energy is a Denver-based explorer/producer that’s both traditional and modern at the same time. It’s traditional because the company believes in “drill-bit driven growth,” drilling and developing its own wells rather than growing via acquisition. But it’s very modern in its reliance on its staff of geoscientists to assess the potential reserve size, geologic and mechanical risks and costs. Cimarex operates in the Permian Basin, Mid-Continent and Gulf Coast regions, and as of the end of 2009, had proven reserves of 1.53 trillion cubic feet equivalent (up from 1.34 Tcfe at the end of 2008), of which 80% was natural gas. The company pays a nice dividend (forward yield 0.4%). The company’s quarterly report of February 17 beat Street estimates, and improved production guidance kept investors’ enthusiasm high. Cimarex looks like a conservative company that gives investors’ a way to bet on future gains in energy prices.

Back then, when the stock was trading at 61, Mike told subscribers that a smart buying range was 56-60. Since then, it’s topped 62, and now it’s just pulled back to 57, where it’s kissed its uptrending 50-day moving average. I don’t think it will hit 56. I think it’s a fabulous buy right here.

Disclosure: The author does not hold stock in the profiled company.

Source: Cimarex Energy: A Way to Bet on Future Gains in Energy Prices