Some people think penny stocks are for amateurs. Pfff! I would never snub a potential winner just because it falls under the $5 per share mark. Penny stocks might be the cheapest, but they can also be the trickiest. With big risk, though, springs big reward.
Penny Stocks in Oil and Gas
Mid-Con Energy Partners (NASDAQ:MCEP) is a penny stock company that has begun 2019 with a nice steady climb up the charts. Selling for $1.00 USD at the time of writing, MCEP stock has jumped from $0.74 on December 31st, to its current selling price today. That’s about a 25% gain in one week.
Based in Tulsa, Oklahoma, Mid-Con is an upstream oil and natural gas producer. As an exploration and production company, its success rides heavily on the price of oil.
So the fact that oil began climbing at the start of 2019 has meant only good things for the MCEP penny stock; it’s climb isn’t just coincidental.
Oil Price Helps MCEP
Oil has gained nearly 12% since last Monday, which has been its biggest week-on-week rally in two years. As of today, it is now selling for $58.45 a barrel.
It has been a much-needed turn around for the commodity; oil prices fell to their lowest levels of under $50 per barrel in 2018.
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But if oil prices can continue to climb back up, MCEP stock should climb with it. Looking back on Mid-Con’s history, the company’s shares have literally mirrored oil prices. So this is the question: Do you believe oil is about to explode again? If so, this is the penny stock for you!
Penny Stocks in Oil: Speculative
As the company’s revenue depends so much on the cost of oil, MCEP is a speculative penny stock. For example, stock stayed above $20 per share when oil traded above $100 per barrel back in 2013.
So you do the math. If oil prices climb, MCEP stock may just hit those high levels once again. This is why it’s a good one to keep on your radar.
Featured Image: Depositphotos © valphoto
