KOG is definitely a volatile stock which traded below $7.50 per share in April 2013 and now stands above $9.40, more than a 25% gain in less than three months. Within a year I expect the share price to be near $12.
Another Beneficiary That Offers a DividendWTI crude is called Texas light sweet because of its superior quality. It is oil with low density and is called "sweet" because of its low sulfur content. It is prized around the world and is now richly priced. With WTI crude at $107 per barrel it makes good economic sense for producers to sell it to oil-hungry nations overseas. It also makes it possible for international producers of Brent crude to sell and ship their oil here to the States. That bodes well for ocean-going oil tankers and the companies that own them. One that is currently in the spotlight is Nordic American Tankers ( NAT). NAT is in the business of acquiring and chartering double-hull tankers.
The Aug. 5 earnings report should be very telling. Although the average analyst's estimate on revenue and sales growth for the quarter is calling for a drop of over 27% the news won't be all bad.