Kodiak Oil (KOG) has long been a favorite of those in the know on independent domestic oil and gas exploration. In many ways the company is a throwback to the good-old wildcatter days. 

The problem is that execution has been inconsistent and often disappointing. Still, it’s hard to ignore potential with a presence in two of the hottest areas in the great American oil revival: Williston North Dakota & Montana and Greater Green River Basin Wyoming & Colorado.

The stock is changing hands at a price/earnings ratio of 11 and a P/E-to-growth ratio of 0.38, which makes it very attractive.

The Street expects annual growth of 50% over the next five years, which is huge even in this hot space -- the industry is expected to grow at 15%.

Management is hustling to share the story and will appear all over Wall Street, with September conferences hosted by Barclays (BCS), Deutsche Bank (DB) and Credit Suisse (CS), and October conferences with Johnson Rice and  Credit Suisse. 

Technically the stock makes a major breakout with a close above $9.25, and from there the next leg up lifts the stock to $10.75. Longer term it has potential to trade even higher. 

It can be volatile so a stop at $8 would be smart.

Charles Payne, a FOX Business contributor, is president of Wall Street Strategies. At the time this article was published he, his firm and/or his family did not own securities in Discover Financial.

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