Penny Stock Pick - BDCO

The stock market plunged for second straight day as oil price has touched record high of near $140 per barrel. So couldn't find a save heaven? How about be more aggresive and put money in the company which benefit the most by the high oil price - the oil drilling company. Blue Dolphin Energy(BDCO) is a small oil and gas company doing business at the Gulf of Mexico. On Wednesday the stock surged almost 30% as investors shift attention to tiny oil company which may have great potential due to global hunger for oil. Let's take a detail look at the stock.

Technical
The technical chart shows bullish sign as MACD is back above 0 and K line has crossed on top of D line. However there is possiblity of resistence now that the stock is back to 200 day moving average.

Insider
Insider transaction shows bullish sign as earlier this year the VP of Blue Dolphin bought 25,000 shares. The same person also bought 15,000 shares around December of last year. The institutions were also bullish and bought 71,464 shares in the latest quarter.

Financial
The financial result wasn't impressive as the latest quarter show decrease in revenue but increase in net loss. Despite the net loss, the company has a relatively healthy balance sheet with plenty of cash and little debt.

Conclusion
The stock is definitely worth looking at. However do pay attention to the next couple of days as the stock is now back at 200 day moving average and may encounter profit taking.

Penny Stock Score (1~5) 5 is highest
1. Industry (Oil): 5
2. Technical: 3
3. Insider: 4
4. Financial: 3
Recommendation: Buy