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Contango Oil And Gas A Natural Recipe For Profits

|Includes:Contango Oil and Gas Company (MCF)

 Many may fear small caps for their lower levels of capital and higher assumed risks

however what many may miss is a well run small cap may offer much greater profit

potential with no increased risk. My favorite small cap currently is Contango Oil And

Gas with a fat 25% gross margin and only seven employees it is one of the lowest

cost producers of oil and natural gas its CEO Ken Peak even mentions this as one of

the few advantages you can have in this industry. Contango has an incredible

balance sheet with plenty of cash and little if any debt. On top of having strong FCF

and even strong profitability it is trading at only about 14 times forward earnings

which in my opinion is a complete steal.  

What Is your opinion? Let me know in the comments below.

Disclosure: Disclosure: Author has a position in MCF and is long the stock.

Stocks: MCF