"Commodity prices have soared and the reflation theme is quickly taking hold," says Ron Rowland in his All Star Investor. Here, the advisor adds a new energy E&P stock to his buy list.
"Crude oil rose 29% in the month of May, gold is challenging its old high near $1,000, and grain prices soared.
"Who is buying all this stuff? A good guess would be someone with a huge pile of cash and a desire to diversify out of dollar-based financial assets ... such as China.
"We already own positions in this sector such as Fidelity Select Natural Resources (FNARX), a fund that invests primarily in energy and materials, with about one-third of its holdings outside the U.S.
"In our effort to continue to rebuild the portfolio, we are adding another energy pick: Continental Resources (NYSE: CLR), an explorer/producer of domestic oil & gas.
"Continental Resources is particularly interesting because of its involvement in the Bakken shale formation of North Dakota, Montana and Saskatchewan.
"Some geologists think Bakken has huge, Saudi-like deposits. Last year CLR shares traded over $80 before crashing back to $12. A jump this morning has CLR trading above $32 with very strong short-term momentum."
