NEW YORK (TheStreet) -- Today, Jim Cramer and I talked about a few speculative oil stocks.
I know people love to try to find small-cap, under-$5 stocks, and it is easy to imagine cheap shares doubling or tripling or doing even better than that. But most of these stocks are very speculative and deserve only a very small part of your portfolio. The few I speak about in the video above should be recommended only with that caveat.
Magnum Hunter was a natural gas company that has endeavored in the past 18 months to convert itself into a much more liquids-based producer, a road that so many E+Ps have tried to follow in the last two years. But Magnum may finally be turning the corner and dropping its reputation as a "bad" natural gas company.With the sale of its Eagle Ford assets Wednesday, MHR now has a nice-looking asset mix with a more sustainable debt profile. At $4, it could be worthy of a punt. Less worthy, in my view, is the company on the other end of the deal, Penn Virginia. Also looking to concentrate domestically in liquids, PVA sold its interest in its Indonesia assets and is doubling down on its Eagle Ford assets with its purchase from Magnum. But just because PVA is in a hot, tight oil play like Eagle Ford does not guarantee it will be successful. I still think PVA has quite a lot to prove. I talk more about these stocks in the video above. At the time of publication the author had no position in stocks mentioned. Follow @dan_dicker This article was written by an independent contributor, separate from TheStreet's regular news coverage.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV