SYRG [Nov 2012]

Synergy Resources Corporation (SYRG) was founded in 2007 and is an oil and gas operator in Colorado. The Company is focused on the acquisition, development, exploitation, exploration and production of oil and natural gas properties located in the Wattenberg field in the D-J Basin in northeast Colorado. Recent data confirms the company operates 146 wells, held approximately 222k gross acres and 188k net acres under lease. Its estimated net proved oil and gas reserves included 5.1 million barrels of oil and condensate, and 33.4 billion cubic feet of natural gas. The company does not pay dividends.

I've been watching SYRG stock price for a while now. At first it caught my attention because institutional investors were buying it agressively and its revenue growth was astonishing. After some consolidation period, price shot up almost 50%, analysts kept BUY recommendations and the company reported positive annual profit for the first time. Obviously I thought it was too late to step in, but then price went down about 15% in what seemed to be a technical movement of consolidation after a big jump. I see it as a temporary dip. 

Right now the company is not that cheap considering its current annual EPS, but analysts are projecting a high growth for this company. That combined with the fact this is a very small company means this is a speculative play. Here are some stats on the price:

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