Contango Oil & Gas Company (MCF)

Smart ownership... company has only six full-time, paid employees and a CEO who knows the business... low profile, cost-conscious, and exploring for natural gas in the right places at the right time! Almost no coverage on the street. Good time to get in even though at all-time high

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!

I am not sure on the timing or catalyst that will send Oil and gas higher and higher. I do feel that it will happen because of limited supply, growing demand and political turmoil in many regions of production.

stock is worth 50-100% more based purely on current holdings and optionality.

i rate A natural gas and oil company

Nat. Gas play.

Oil & gas prices wont stay at these levals, Most companys cant produce for a profit at these prices. Some may shut down operations and/ or r&d. supply will contract, demand will keep rissing. I wish to be in ahead of the croud.

Gas prices will ultimately rebound

Market price of nat gas >6$
I can buy 21 proven units of gas inside the u.s for 2$. Not bad.

A rare debt-free oil and gas producer. Management is friendly to shareholders. Focus is on being a low-cost producer of oil and gas. My investment assumes that oil and gas prices will recover substantially in the next few years, and Contango has enough cash to survive until then.

Potential issues: being a small producer, Contango can be significantly affected by the success or failure of a few wells. My thesis about oil and gas prices recovering may be wrong.

Upside: Given that Contango has extra cash, it might be able to make acquisitions at attractive prices. Management can increase intrinsic value per share significantly by buying back shares.

oil and natural gas are two sources of energy. Energy is very important to an economy

Pretty nice valuation.

Gas prices in the short run will do who knows what, but in the longer run will go up. This is a very low cost producer.

Beaten down in price along with industry, but more reactive and flexible than it's peers. Management's behaviours demonstrate enormous belief in the current value of the shares, and I consider them experts in the business.

testing high ROE/RGR

High profit margin, low debt

You must do some homework here. Look at the charts. As the price of Oil/Gas continues to rise, so will MCF--bigtime. Low industry P/E. Had you played the stock a few months ago, you could have ridden it up/down from mid 30;s to high 40's 3-4 times over. Now we will see a somewhat steady rise since their production has stabilized, with no debt. Good takeover canidate.

oil

High reserves, well run (except for a few non-core investments), undervalued.