by Jim Oberweis, Jr. editor The Oberweis Report
We think that wise investors should include at least a modest allocation toward energy stocks in their portfolio.
Aggressive investors might add a smaller company like this month's addition to the Model Portfolio — Northern Oil & Gas
The run in oil likely isn't over. It wouldn't be hard to imagine a supply disruption amid the current turmoil.
equally important -- with the U.S. economy appearing to gain a little
strength, China continuing to expand without pause, and commodity
inflation of all sorts and sizes -- it isn't a stretch to see
increasing demand as well.
Northern Oil & Gas, Inc. is an independent energy company engaged
in the acquisition, exploration, exploitation and development of crude
oil and natural gas properties.
The company acquires interests
in oil and gas acreage and drilling projects, primarily within the
Williston Basin Bakken Shale formation, and is a non-operating partner
in these interests.
The company participates on a heads up basis proportionate to its working interest in declared drilling units.
of September 30, 2010, the company controlled about 121,300 net mineral
acres in the Williston Basin targeting the Bakken and Three Forks
formations, which provides the potential to drill 1,137 net wells.
company has no material lease expirations until late 2011 and continues
to expand its position through aggressive acquisition and leasing
In the company's latest reported fourth quarter,
sales increased approximately 103% to $9.9 million from $4.9 million in
the fourth quarter of last year.
Northern Oil & Gas
reported earnings per share of $.10 in the latest reported third
quarter versus $.04 in the same quarter of last year.
of Oberweis Asset Management own approximately 130,000 shares. These
shares may be appropriate for risk oriented investors.