Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of small oil and gas companies are climbing double-digit percentages as oil moves higher today.
So what: Approach Resources
The price of oil hit bottom early last week on fears that Europe wouldn't be able to fix its financial mess and the worldwide economy may be headed for a further slowdown. But confidence came back to the market mid-week, and Germany and France have pledged to support European banks.
Now what: I'm not sure the fast and furious pace of the rise in oil prices will continue, but I think a slow and steady rise will help these stocks move higher in coming months. A few weeks ago, I wrote that the relatively low price of oil wouldn't last long because demand is still growing in emerging markets and oil supply is coming from more remote locations. If you agree with that assessment, these companies will be some of the biggest beneficiaries because of their leveraged return on the price of oil.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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