Precision Petroleum Corp. (PPTO)

PPTO had a stronger day today and moved up 4%.  PPTO is starting to track oil as we expected.  We closed @ .97 after having been as high as $1.01.

Oil continued the strong move today and hit an 8 month high.  The last trade on oil was $72.39 which was up 1.49%.  Oil had traded as high as $73.00 earlier in the day.

http://www.canada.com/business/fp/rises+above+demand+outlook+supports/1685269/story.html

Oil’s rally is being fuelled by some very fundamental factors.  If you take them all into account, you might call it the perfect storm for oil prices and will lead to another oil price shock.

Demand is rising according to the International Energy Agency.

The dollar is falling and the trend is firmly in place.  Bill gross one of the world’s largest money managers advises clients to get out of USD.

Bill Gross is what the industry calls smart money.  Following Bill gross’s advice has made many investors some huge profits.

Inflation is being re-ignited as the dollar falters and keeps oil moving higher.

We cannot forget that demand from China is likely to keep this oil rally humming along.

Could this oil rally head much higher?

Gazprom CEO says we can expect a move as high as $250 per barrel based on a supply crunch.

If you take all of this into account we think buying PPTO at these prices makes sense and we expect a breakout to $3.00.