Quick Idea: An Overlooked Low-Downside, High-Upside Play on Venezuelan Oil

A Small-Cap Positioned to Win from Venezuela's Reopening

Yes, like many others, I spent the weekend answering one question: “How can I make money from a potential restart of Venezuelan oil production?”

While the most obvious answers led to mega-cap companies like Chevron or the big oil service companies like Halliburton, I had no interest in buying them. They may present the safest bet on Venezuelan oil, but they are just too big to excite me. However, I did find a small cap that would also be one of the beneficiaries.

Moreover, I like the thesis because if nothing happens in Venezuela, I have bought a decently run small-cap with a clean balance sheet at a fair valuation. If, however, Venezuela restarts its oil production (under US leadership), this company would benefit immensely—in two possible ways, both of which would likely represent 100% upside from current prices.