I don't normally toot my own horn, but stock picks I made earlier this year through my investment newsletter have done far better than the S&P which has fallen 6% since the beginning of the year.

Each month my newsletter mentions three stocks. I average the percentage changes in the stocks I mention at the end of each month. I also have a stop loss rule in which stocks that decline by 2% are sold from the theoretical portfolio and the -2% return is included in the average for the month.

The top three performing stocks through April are:

• Walter Industries (NYSE: WLT) rose 66% from $41.71 to $69.36
• Southwestern Energy (NYSE: SWN) rose 30% from $32.62 to $42.31
• Ultra Petroleum (NYSE: UPL) rose 21% from $68.80 to $83.07

These picks share two common traits. First they are benefiting from the rise in energy prices being fueled by speculators who are betting that the Fed rate cuts will lead to a lower dollar and higher oil prices. Second, they enjoyed relatively low Price/Earnings (P/E) ratios in relation to their forecasted earnings growth when I picked them.

I still think these stocks are worth considering. However, the one concern I have is that if the dollar strengthens, the price of oil and gas could take a hit, which might slow their revenue growth.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.