Big (Profit) Country for Small Cap Oi...
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Feb
12
Ida Hansen
Big (Profit) Country for Small Cap Oil in Texas!
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In Texas, “Big Country” is an area that has much to offer to those living there or visiting…or drilling for oil and natural gas!

That is why there so many Big Oil firms headquartered in Texas, such as ExxonMobil (NYSE: XOM), ConocoPhillips (NYSE: COP), and Phillips 66 (NYSE: PSX).  It is also where promising small cap firms like Mondial Ventures (OTCQB: MNVND) operate.  A previous article in this site pointed out the many advantages of investing in Big Oil stocks.  Another detailed why small cap oil firms are alluring under present market actions.  With holdings in the legendary oil and natural gas country of Texas, Mondial Ventures offers thes best of both worlds.

Big oil has the potential for huge finds.

That is what Mondial Ventures is fracking for in Texas.  It is operating in an oil rich region.  Huge discoveries create so many opportunities for oil firms, and the shareholders.  The area is so bountiful that investors from around the world are circling what is available.  It is like that for North American energy assets, in general.

But it is especially like that for resources like those owned by Mondial Ventures.

That is due to the growth potential that small cap oil firms present for investors.   Even a big discovery is not going to move the share price much for a company the size of an ExxonMobil, ConocoPhillips, or Phillips 66.  But it can take the stock price for a small cap oil firm like Mondial Ventures much, much higher.  The potential for high growth stocks is tremendous.  That is the beauty of operating in the Texas oil country for a small cap firm.

Big Oil firms like ExxonMobil, Phillips 66. and ConocoPhillips are all down for 2014 (chart below).

A recent article in The Wall Street Journal by Daniel Gilbert, “Big Oil Companies Struggle to Justify Soaring Project Costs,” reported on how ExxonMobil and other major energy firms had to spend heavily on exploration and production just to sustain the stock price.  This is not the case with those the size of Mondial Ventures.   The region where it is is operating could lead to a lucrative discovery for Mondial Ventures.  That would be even more rewarding for the shareholders!



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