Thesis Pays Off Big for Small Energy Stocks

The thesis behind my Real Money column yesterday was: The underlying strength in global demand for oil made this week's pullback (West Texas Intermediate crude was down 11% at one point yesterday) a buying opportunity for U.S. exploration and production stocks. E&P stocks gyrate based on oil's machinations, and when one sees a correction that is so clearly overdone, one should buy. 

In yesterday's column I focused on Gastar Exploration (GST) , and, sure enough, it has jumped 11% today. In fact, GST shares have risen nearly 25% since yesterday's intraday low. I was buying for my clients at that point, ($1.06/$1.07 per GST share) and sometimes it seems that trading smaller energy stocks is just a never-ending game of mean reversion. Buy them when they plummet, sell them when they pop. ...560 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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