"Mainland Resources (NASDAQ: MNLU), a small natural gas play, could be a giant in the space in a short period of time," says Charles Payne.

In his WStreet Market Commentary, he explains, " The company involved in the super exciting Haynesville shale region, which could be one of the largest domestic on shore natural gas fields ever."

"The stock has been coming on lately as more investors learn about the company's potential in the Haynesville shale region.

"Discovered in March of this year, the Haynesville field -- according to Energy and Capital -- could conservatively hold 168 trillion cubic feet of natural gas. Chesapeake Energy (NYSE: CHK) has declared Haynesville the most important find in its 19 year history.

"There was always a notion that a big find was in the space that the company currently owns (2,700 acres), but when it was first explored back in the 1950 crude oil prices were much lower and there was no technology to get to the natural gas.

"Recently, the company announced a joint venture with Petrohawk (NYSE: HK), which until recently had the hottest stock in the entire market.

"Most folks don't realize that there is a gold rush in domestic resources going on right now in part to new technologies to find and drill for crude oil and natural gas. This has created a fantastic problem of no rigs and too few pipelines.

"This makes the deal with Petrohawk so special. Another element to the arrangement is the fact that Petrohawk will pay all expenses associated with drilling the first well. The financial arrangement will be 60%-40%, with Mainland getting the latter.

"That is a very favorable ratio for a junior resource company, and it means they may not have to go to the public for additional funding that would dilute present shareholders. There are some analysts that think this is a $9.00 stock, but I think it could be a $13.00 stock by the end of this year.

"I interviewed the CEO of Petrohawk in June when I anchored 'Cavuto' on the Fox Business Network, and natural gas is going to play a prominent role in our energy use for decades to come.

"In fact, I spent time with T. Boone Pickens last month in Wyoming, and his plan is more about natural gas to run our cars than wind mills to power our electric grid. I also spoke with the CEO of Mainland and his optimism is clear.

"Of course this is a small-cap play, and cash flow may not begin until late in the year, so there are greater than average risks.

"That may explain why the shorts have been on the attack. Right now, I'm told there is a 20 million share naked short position. That is a significant amount of folks that may have to cover in a hurry.

"Technically, the stock has room to $8.00, and through there I think that the shorts will begin to cover and the stock should rally to $10.00 fairly quickly. Our long-term price target is $13.00.

"Nervous investors should consider a stop-loss at $5.30, although we would more than likely be buyers on weakness unless there was a material fundamental change in the company and it's potential."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.