Contango Oil & Gas Company (MCF)

plaidone (97.84) Submitted: 5/21/2008 12:26:18 PM : Start Price: $88.35 MCF Score: -24.20

I just bought some of this in my real portfolio, so I thought I'd go ahead and pitch it as well to maybe give my real money a chance to work for me. No one seems to have a handle on why oil keeps going up. There aren't enough refineries in the US, the war, lack of supply, etc. I'm sure are all players, but with alternatives like hydrogen, biofuels, or even (did I really say this?) water power just around the corner, and the fact that OPEC says we aren't really in any danger of running out of supply, how exactly can you explain the price of over $120 per barrel when we were looking at less than $60 per barrel just over a year ago? Is it a bubble? I don't know, but one thing is certain--oil isn't going to be seriously challenged as a fuel supply overnight. So I'm putting some eggs in this basket since the return has been so good over the year. I'm only marking it as a 2-4 year outperform since I'm pretty sure aternative fuels are finally coming into their own and will be a practical alternative to oil in the next few years. Invest in the good ol' USA!