Small cap and micro cap oil and gas plays have been in hibernation for months now.  Over the last few days, it appears some are waking up.  Investors are seeking these cheap oil and gas plays out in hopes of seeing more business flowing to them as individuals boycott and shy away from large cap oil companies.  The hatred towards BP is directly helping these small caps or at least that is what investors are thinking. In addition, the halt on drilling in the deep water may have a long term impact on oil prices, pushing them higher. Many of these small and micro cap oil stocks have been overly punished due to lack of volume in recent weeks.  As the volume dries up, small cap stocks often times will get hit even harder.

Two oil and gas stocks that have rocketed higher in the last two days are Blue Dolphin Energy Company (NASDAQ:BDCO) and Pyramid Oil Company (AMEX:PDO).  Blue Dolphin Energy was trading at $0.20 just three days ago.  Today it hit a high of $0.61.  Truly an amazing 200% run.  Pyramid Oil is up over 30% today.  Another one that has jumped in recent days is Royale Energy, Inc. (NASDAQ:ROYL).  This stock was trading just above $2.00 a week ago.  It now finds itself hitting a high of $2.58 today.

There are still small and micro cap oil stocks hovering at their lows that look interesting to me.  In general, I try and find stocks at their dead lows when others in the sector that match their description start to jump.  This is known as a sympathy play in my methodology.  I am keeping my eye on Tri-Valley Corporation (AMEX:TIV), SMF Energy Corporations (NASDAQ:FUEL) and have picked up a little Trico Marine Services Inc (NASDAQ:TRMA) for my portfolio today.  While these stocks carry a lot of risk, if the sector really starts to take off, these should follow. To get more guidance, education, trading ideas and plays, join the Research Center.

Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com