My opening bell alerts need no introduction, the last three have given us over 200% cumulative gains.

 

What do you get when you have a small float, high short interest, and consolidation near 52 week lows?

 

The potential for a strong bounce higher.

 

So with that said, get Lucas Energy, Inc (LEI) on your screen right now.

 

LEI has a small float and is trading down near 52 week lows, where it appears to have multi-month support. We think LEI could bounce big off these levels.

 

LEI has a chart similar to our last opening bell play, FREE (which gained 100% over a few days), check it out...

 

 

 

We love the look of this chart coupled with its small float and high short interest.

 

LEI has a 50 day moving average of $0.57 and a 200 day moving average of $0.80. We think both these targets could be in play tomorrow.

 

 

Company Background...

 

Lucas Energy Inc (LEI) is a Houston-based independent oil and gas company focused on the development of our reserve base, largely oil, in the state of Texas.  They have working interests in over 15,000 net acres in South and East Texas with proved reserves valued at $132.5 million (SEC PV-10), plus additional probable reserves of $35.9 million. 

 

Their acreage encompasses the Eagle Ford shale, one of the most active plays in the U.S., as well as Austin Chalk, Buda and Glen Rose producing formations.  Their high-quality oil and gas assets have significant value to be mined and value created for the benefit of our shareholders.

In December 2012 a new management team was put in place that has moved swiftly to reposition the company for growth and opportunity.  According to their website, the new team has favorably resolved legacy legal matters, reduced corporate overhead, significantly improved the balance sheet and is increasing the efficiency of field operations. Next steps will be to develop acreage to increase production and generate positive cash flow, with the ultimate goal of maximizing shareholder value.

LEI now seeks to embark upon a strategy to develop low-risk opportunities to increase production while moving toward higher producing development targets, which are also more costly.  This "grow into growth" strategy will balance the types and cost of capital they acquire with the development opportunities currently present within the company's portfolio. 

 

By starting small and capturing low-hanging fruit - such as low-cost recompletions and work overs - LEI plans to enhance existing production, grow their assets and keep LEI's balance sheet in check. 

 

For more info on LEI, visit their website at http://www.lucasenergy.com

 

 

We think LEI could do big things today, possibly over multiple days. Make sure you keep watching LEI this week.

 

All the best.

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