CREDO Petroleum Corp (CRED)

This pitch concentrates on CRED the business, not the CRED the stock price.

Factors to consider-

I. Management:
A. Managers like owners
The CEO is James T. Huffman. He owns approximately 1.2 of the 9.33 million shares outstanding, or approximately 13% of the company. As of the last annual report, management and the board of directors own approximately 25% of the company.

B. Executive Compensation
As of the last 14a, Mr. Huffman was paid a base salary of $135,000 a year, which was established in 2004. He also received a cash bonus of $90,000. Despite a recommendation his salary be increased, Mr. Huffman declined. (Source: DEF 14A). Further, he has received no stock option incentives for the previous several years.

C. Performance
CRED has had significant growth in their balance sheet for the past several years.

II. Company

A. Oil and Gas
CRED has had fourteen consecutive years of record reserve quantities, and is approaching their seventh consecutive year of record production. For 2007, CRED replaced 189% of production. Not only has production significantly increased, costs have decreased.

B. Calliope
CRED holds a patent in a technology called Calliope. To understand the impact and potential of Calliope, please consider the implications of the press release on 12-03-07, found at http://www.credopetroleum.com/news.htm. This should be considered the economic moat.

C. Debt
The company does not use leverage and has practically zero debt (163,000 in liabilities).