Strong Energy Stocks Under $10

The price of oil has once again begun to move higher after a drop from the yearly high it set in mid-November. Many of the energy stocks followed the drop of the commodity, however a handful have continued to show strong leadership even during the selling. Within this category are a small number of stocks that trade at less than $10 per share. Investors love to buy "cheap" stocks, so here is a list of five strong energy stocks currently trading under the $10 watermark. IN PICTURES: 9 Simple Investing Ratios You Need To Know

Midwest Oil
Kodiak Oil & Gas Corp (NYSE:KOG) is an independent oil & natural gas company that has acreage in the Williston Basin and Green River Basin located in the north Midwest. The land explored gives the company access to the larger and better-known Bakken Basin that is highly sought after. The company has a forward P/E ratio of 18.4 and is trading at the best level in over two years. The high of $6.81 is a reasonable target in the coming year.

Bullish Energy
FX Energy (Nasdaq: FXEN) is a U.S.-based company that has its principal exploration and production facilities in the Rotliegend sandstones in Poland. The company also has smaller acreage in Montana and Nevada. FXEN trades with a forward P/E ratio of 19.0 and hit a new two-year high at the end of November. The stock has bullish volume during the rally and if the trend continues, another 25% on the upside appears very possible. (For more, see Oil And Gas Industry Primer.)

Tapping Mountain Resources
Warren Resources (Nasdaq:WRES) is an independent energy company that primarily develops coalbed methane and natural gas properties in the Rocky Mountain region. The stock trades with a forward P/E ratio of 15.8 and recently hit a new two-year high on heavy volume. There is strong support in the $4.25 area and no significant resistance, until it gets to the double-digit area.

Energy Overseas
Vaalco Energy (NYSE:EGY) is an energy company that acts as an operator of consortiums internationally in Gabon and Angola as well as minor interests in the Gulf Coast area. The stock has a very low forward P/E ratio of 11.1 and technically is trading in a consolidation pattern after a big rally in November. The big time resistance is near $10 where the stock hit an all-time high in 2006.

Most Attractive
Gran Tierra Energy (NYSE: GTE) is a Canadian independent energy company that explores for and produces oil and natural gas in Colombia, Argentina, and Peru. The company trades with a forward P/E ratio of 16.3 and has been in the midst of a two-month consolidation pattern after hitting a two-year high. The stock is the most attractive of the five due to its chart pattern and technical indicators. The exposure to the Latin American emerging markets is also a bonus. (For more, see Going International)

The Bottom Line
All five stocks are considered aggressive investments due to their stock price as well as their volatility. The good news is that all companies are expected to be profitable in the coming year, which lower some of the potential downside.

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