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5-Star Stocks Poised to Pop: VAALCO

Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil and gas small-cap VAALCO Energy (NYSE: EGY  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at VAALCO's business and see what CAPS investors are saying about the stock right now.

VAALCO facts

Headquarters (Founded)

Houston (1984)

Market Cap

$262 million

Industry

Oil, gas, and consumable fuels

Trailing-12-Month Revenue

$99.2 million

Management

Chairman/CEO Robert Gerry III (since 1997)
CFO Gregory Hullinger (since 2008)

Return on Equity (Average, Past 3 Years)

10.4%

Other Highly Rated Oil and Gas Stocks

ExxonMobil (NYSE: XOM  )
BP (NYSE: BP  )
Chevron (NYSE: CVX  )

CAPS Members Bullish on EGY Also Bullish on

Chesapeake Energy (NYSE: CHK  )
Apple (Nasdaq: AAPL  )

CAPS Members Bearish on EGY Also Bearish on

ConocoPhillips (NYSE: COP  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 97.2% of the 1,583 members who have rated VAALCO believe the stock will outperform the S&P 500 going forward. These bulls include milkyway760 and irishred1.

Earlier this year, milkyway760 tapped VAALCO as a tiny player with terrific potential:

A outstanding small cap energy company with working interest in various parts of Africa, UK, Texas Gulf, and Gulf of Mexico. Great management with the experience to guide through todays murky waters. Looking to expand its production facilities.

In a pitch from three days ago, irishred1 elaborated on the bargain opportunity:

While Africa is politically unsettling to me, with risk comes reward. ... Also, unlike many peers, they have maintained very low debt, which calms me quite a bit. Did I mention they are actively buying back shares (which suggests management prudently believes them to be undervalued)? I like the direction in which the company is going. ... In my opinion, oil prices will stay down only temporarily in the long run, so I’m looking for value oriented ways to capitalize on the trend. Uncertainty reflected in the current share price should hopefully provide an opportunity to profit.

What do you think about VAALCO, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple is a selection of Stock Advisor. The Fool owns shares of Chesapeake Energy, which is a recommendation of Inside Value. The Fool's disclosure policy always gets a perfect score.


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Related Tickers

2/14/2012 4:01 PM
EGY $7.17 Down -0.14 -1.92%
VAALCO Energy, Inc… CAPS Rating: *****
COP $73.60 Up +0.79 +1.09%
ConocoPhillips CAPS Rating: *****
CVX $106.49 Up +0.11 +0.10%
Chevron Corp CAPS Rating: *****
XOM $84.67 Up +0.25 +0.30%
ExxonMobil Corp CAPS Rating: ****
AAPL $509.46 Up +6.86 +1.36%
Apple CAPS Rating: ***
BP $46.47 Down -0.90 -1.90%
BP p.l.c. (ADR) CAPS Rating: ****
CHK $22.71 Up +0.05 +0.22%
Chesapeake Energy… CAPS Rating: *****

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