Our strategic entry into “Big-Oil” back in February of this year is beginning to pay-off handsomely for those who followed my lead. On 25 February, I announced Strong-Buy signals on BP PLC (BP NYSE) at the $40 per share level and Schlumberger (SLB NYSE) at the $38 per share level.

At the time of my BP and SLB buy-signals, with oil hovering around $40 per barrel, I stated that, “Even with all this information coming in, there remains a major glut of oil on the market – and that is why oil prices remain weak. Yet, I have no doubt that we will work through this surplus through global production cuts (and eventually increased demand via global economic recovery), which should drive oil-prices moderately higher over the next few business quarters.”

My projections on the global oil market have now become reality with the price of crude moving up over 80% to the current $74 per barrel range. And, as expected, the share-prices of both BP and SLB have moved up in unison. BP, one of the world’s largest and most diversified producers, is now up over 30% since our buy-signal -- and oil-services giant SLB is currently higher by more than 70% since our buy recommendation.

I firmly believe that holding shares in these two industry leaders will continue to deliver strong shareholder value over the coming business quarters as the global economic recovery moves into its next phase. Yet, as always, be sure to perform your own due diligence and remember our mantra of protecting partial profits on the way up.

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