Big Potential in Small-Cap Oil Stocks
Among the well-known favorites mentioned were Boeing
Lasry is the billionaire CEO and co-founder of Avenue Capital Group. With over $11 billion in assets, Avenue Capital Group focuses on special situations and distressed debt around the world. Avenue Capital Group is where Chelsea Clinton worked as an analyst.
As detailed in another article on TheStreet, small-cap oil stocks have much more potential upside than do big oil companies such as Exxon Mobil
While Exxon Mobil will likely finish up on the year as a "Dog of the Dow," the performance of small-cap oil stocks has been much better. Octagon 88, now just under $7 a share, was around $5 in early August. Americas Petrogas is near $1.50 after being around 95 cents in mid-September.
Octagon 88 has surged on positive reports about its holdings in Canada. Americas Petrogas has risen on strong earnings, increased production and the hiring of an investment bank for a strategic review to enhance shareholder value. Lasry likes Connacher Oil and Gas because the company has one billion barrels in proven reserves.
It is hardly a surprise that a Canadian small-cap oil and gas company was found to be so appealing.
The North American energy sector is the most attractive in the world. It is unmatched for its political stability and security. Royal Dutch Shell
As reported in a recent article in National Geographic , "Outside of the United States, there's neither the legal environment nor the oil services industry capacity to make shale oil and gas development worth the costs. More than 6,000 wells were drilled for unconventional oil in the United States and Canada in 2012, and only 100 outside of North America."
As for Connacher, it warrants attention. As a Forbes 400 member, Lasry has obviously done very well investing in special situations; his remarks on Connacher shouldn't be overlooked by investors looking for what could be a small-cap bargain.