This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Penny Stock Energy Plays

Stocks in this article: SNEN SSN LEO

By Louis Navellier of InvestorPlace

With crude oil prices at about half of their 2008 highs and only a few dollars off their lowest levels of 2010, you may not think that energy stocks are a great investment. Crude oil behemoth Exxon Mobil (XOM) is off about 10% so far in 2010. European oil stock leader Total (TOT) is down 23% since January. And Dow component Chevron (CVX) is barely keeping pace with the market.

But a small group of small-cap energy stocks are really hitting their stride. These penny stocks trade for just a dollar or two a share and are very affordable. They also offer explosive profit potential that penny stock investors are used to.

Here are five energy penny stocks to consider.

Sinoenergy (SNEN)

Sinoenergy (SNEN) produces customized pressure containers and compressed natural gas (CNG) facilities. This energy company also constructs CNG stations for its third-party clients. Thus far in 2010, this penny stock is up 0.5%, similar to the broader markets which have seen comparable gains. However, over the past 12 months, SNEN has jumped an impressive 42.3%. The major jump occurred in Oct. 2009 after Sinoenergy signed a merger agreement with Skywide Capital Management. In its last income statement, SNEN reported a net profit margin of 21.5%, another reason this penny stock is a buy.

Samson Oil & Gas (SSN)

Based in Australia, Samson Oil & Gas (SSN) is engaged in oil and gas exploration in Australia as well as the U.S. Since January, SSN has seen an incredible gain of 433%, compared to small gains by the broader markets. At the beginning of 2010, the stock was trading around a quarter, and is now up to $1.29 as of this writing. Based on its affordable stock price and its recent stock surge, Samson Oil & Gas is an energy penny stock worth buying.

Lucas Energy (LEI)

Lucas Energy (LEI) is an independent oil and gas company. Based in Houston, LEI covers approximately 12,500 acres of oil and gas leases in Southern Texas. In March, the company reported having 30 wells, which combined for a production nearly 200 barrels per day. Year-to-date, LEI stock has jumped an impressive 149%. LEI is up over $1 from its 52-week low of $0.44, and looks poised for growth based on its 2010 performance.

RAM Energy Resources (RAME)

RAM Energy Resources (RAME) is another independent oil and gas company that makes the list. RAM is engaged in the acquisition, development, exploitation, exploration and production of oil and gas in Texas, Louisiana and Oklahoma. This penny stock has watched its stock rise 24.6% over the past 12 months. Consequently, analysts have upped their estimate for RAME this quarter from last year's EPS, creating more hope for shareholders.

Hyperdynamics (HDY)

Hyperdynamics (HDY) is yet another Texas-based oil and gas penny stock that makes the grade. Operating in Guinea, HDY has the contractual rights to 80,000 square kilometers in the African country. Since January, the stock has surged 94.3% compared to small gains by the broader markets. With a current stock price of $1.69, the stock has gained $0.82 over the past nine months, and is trading near its 52-week high of $1.98.

As of this writing, Louis Navellier did not own a position in any of the stocks named here.

One of Wall Street's renowned growth investors, Louis Navellier is the editor of four investing newsletters: Emerging Growth (formerly known as MPT Review), Blue Chip Growth, Quantum Growth and Global Growth. His longest-running publication, Emerging Growth, has a track record of beating the market nearly 3 to 1. Navellier is the author of a BusinessWeek bestseller, "The Little Book That Makes You Rich," and the chairman and founder of Navellier & Associates, Inc.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs