New Concept Energy, Inc. (NYSEAMERICAN: GBR) is flying early on in the market this morning and for good reason. While the company hasn’t released any news of its own, it’s flagship product, oil is seeing growth as Presdient Trump’s comments lead to fears that oil will climb out of control. Today, we’ll talk about:
- Trump’s comments;
- what we’re seeing from GBR as a result; and
- what we’ll be watching for ahead.
GBR Gains On Trump Comments
As mentioned above, New Concept Energy is having an incredibly strong start to the trading session this morning. While the company themselves hasn’t released any news, news is breaking that’s leading to expectations of extravagant rises in the price of oil.
Investors in the United States are starting to become concerned about oil as sactions on Iran and oil rich Venezuela could cause declines in the output of oil around the world, squeezing supply. At the same time, President Trump recently made statements attacking OPEC for manipulating oil prices, which many believe will result in a backlash from OPEC who has the potential to starve supply and push prices up. In fact, Trump resently said:
OPEC is, and they better stop it because we’re protecting those countries, many of those countries. Just spoke to King Salman of Saudi Arabia and explained to him that, because of the turmoil and dysfunction in Iran and Venezuela, I am asking that Saudi Arabia increase oil production, maybe up to 2,000,000 barrels, to make up the difference. Prices too high! He has agreed!
The problem is that OPEC nor Trump have been known to stand down. Unfortunately, if the President does move forward on his threats, OPEC could make changes that weigh heavy on the United States oil supply. While this is bad news for the consumers that pay for oil, this is great news for stocks like GBR and others in the sector.
What We’re Seeing From The Stock
As news breaks that suggests that we could see oil wars as part of the trade wars, concerns of increasing oil prices are coming up. Of course, increasing oil prices would be great for New Concept Energy. So, investors are seeing opportunity and fueling massive gains. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:12), GBR is trading at $9.09 per share after a gain of $4.81 per share or 112.38% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on GBR. In particular, we’re interested in following the news surrounding the idea that oil will be included in the trade war as gains in oil could mean big gains for the stock. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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