One way to maintain a margin of safety when buying new positions or adding to current holdings of stock is by buying near the 52 week low. Here are seven small cap oil and gas stocks which are very close to bottoming out within their 52 week ranges:
1. Mission New Energy Ltd (MNEL) is a renewable energy company which owns and operates biodiesel refinery plants. It produces biodiesel a clean alternative energy substitute for diesel. Market cap of $18 million. 52 week range of $1.91 to $8.15.
2. Ferrellgas Partners (NYSE:FGP) engages in the distribution and sale of propane, and related equipment and supplies primarily in the United States. It involves in transporting propane purchased from third parties to propane distribution locations, then to tanks on customers premises or to portable propane tanks delivered to nationwide and local retailers. Market cap of $1.3 billion. 52 week range of $10.20 to $29.00.
3. Enerplus Corporation (NYSE:ERF) operates as an independent oil and gas producer. The company's property interests are located in western Canada and Montana, North Dakota, Pennsylvania, Maryland and Delaware in the United States. Market cap of $4.21 billion. 52 week range of $21.65 to $32.93.
4. Mesa Royalty Trust (NYSE:MTR) holds royalty interests in oil and gas producing properties in the United States. The company was founded in 1979 in Austin, Texas. Market cap of $69 million. 52 week range of $36.46 to $50.25.
5. WPX Energy, Inc. (NYSE:WPX) is an independent natural gas and oil exploration and production company which engages in the exploitation and development of long-life unconventional properties. Market cap of $2.95 billion. 52 week range of $14.20 to $23.42.
6. Memorial Production Partners LP (NASDAQ:MEMP) focuses on acquiring, developing, producing, and operating oil and natural gas properties in North America. The company's properties consist of operated working interests in producing and undeveloped leasehold acreage and in identified producing wells, as well as non-operated working interests in producing and undeveloped leasehold acreage in south and east Texas. Market cap of $285 million. 52 week range of $17.17 to $19.09.
7. Eastern American Natural Gas (NYSE:NGT) engages in acquiring and holding net profit interests in gas properties. It holds net profits interests created from the working interests owned by Energy Corporation of America in 650 producing gas wells and 65 proved development well locations in West Virginia and Pennsylvania. Market cap of $135 million. 52 week range of $22.85 to $24.34.
Of course, there is always a reason why a stock is trading at a deep discount. Perhaps it has a very small market cap and very few analysts follow it. Maybe there is an underlying issue with the business or possibly the market as a whole has decided to pull back. It's always a safe idea to perform due diligence on stocks nearing 52 week lows in order to examine the reason for their price decline.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.