Oil Penny Stocks - Best Oil Penny Stocks 2012 - Oil Penny Stock Picks

Oil Penny Stocks can offer some of the best gains when the price of oil spikes.  However, just because these oil penny stocks trade for cheap prices, doesn't mean the companies' are good.  When looking for the best oil penny stock, you must research the company very well and make sure they can at least survive for the next 8-12 months.  I like to look at the oil penny stocks' assets, cash on hand, and revenue growth.  In 2010, I invested in an oil penny stock called Samson Oil & Gas Limited (SSN).  At the time, SSN stock seemed like a good buy at $0.80.  The company was hitting big in It's oil field located in the North Dakota called the Bakken Shale.  However, SSN dropped down to $0.55 due to a stock offering.  I was sure Samson Oil & Gas was cheap and a good oil stock so I stuck with the trade.  A few months later, I sold out around $0.90 with a nice profit, only to have the stock run to $4's in 2011.

The moral of this story is you will not always pick the right penny stock but if you do your research and believe in the company, you should do well.  Keep an eye on oil prices.  When Oil goes up above $100, oil penny stocks tend to jump hard to the upside.  I failed to wait this trade out and am still kicking myself for selling to early.  The best gains are made in a few months when the momentum traders buy into these stocks due to the large spike in oil.

Below is a list of oil penny stocks to watch going into 2012.  If we see oil jump in 2012, think about buying the following stocks if your research makes sense.