ECA - $49.61 Encana ** Stop Loss $44.00 **
Encana blasted off early in the week and triggered our entry at $46 first thing Monday morning. After an early morning hiccup it rocketed to more than $51 before pulling back to close just over $49 on Friday. If you missed the entry I believe the pullback on Friday is a buying opportunity.
EnCana Corporation is an independent crude oil and natural gas exploration and production company. Its key landholdings are in western Canada, the United States Rocky Mountains, Ecuador, the United Kingdom central North Sea, offshore Canada's East Coast and the Gulf of Mexico. EnCana explores for, produces and markets natural gas, crude oil and natural gas liquids (NGLs) in Canada and the United States. EnCana is also engaged in exploration and production activities internationally including production from Ecuador and the United Kingdom central North Sea. EnCana has interests in midstream operations and assets, including natural gas storage, NGLs gathering and processing facilities, power plants and pipelines.
JAN 2007 $50 CALL ZBM-AJ @ $7.10
Alternate short-term entry:
Entry @ $46 (8/29)
BTU - $70.23 Peabody Energy ** Stop Loss $63.00 **
As natural gas becomes more scarce and supply disruptions in the Gulf scare electric companies the coal sellers will ship even more coal than they do now. Growth in the coal business is spiking as the cheap alternative now that gas is over $10. BTU is the largest coal company with 50 years of proven reserves.
BTU suffered a sharp drop at the open on Friday as traders took profits from the +$10 jump in a little more than a week. Looks like a buying opportunity to me.
Peabody Energy Corporation (Peabody) is a private-sector coal company in the world. During the year ended December 31, 2004, the Company sold 227.2 million tons of coal. It sells coal to over 300 electricity generating and industrial plants in 16 countries. The Company owns, through its subsidiaries, majority interests in 32 coal operations located throughout all the United States coal producing regions and in Australia. Most of the production in the western United States is low-sulfur coal from the Powder River Basin. In the West, it owns and operates mines in Arizona, Colorado, New Mexico and Wyoming. In the East, it owns and operates mines in Illinois, Indiana, Kentucky and West Virginia. The Company owns four mines in Queensland, Australia. Most of the Australian production is low-sulfur, metallurgical coal. In addition to the mining operations, the Company markets, brokers and trades coal.
MAR 2006 $70 CALL BTU-CN @ $6.50
Entry $67.25 (8/29)
CNX - $68.10 CONSOL Energy ** Stop Loss $63 **
Another super star in the coal and gas business found instant favor in the post Katrina world. A +7 bounce saw a -3 retracement on Friday. Wait for confirmation of a rebound before entering new positions.
CONSOL Energy Inc. is a multi-fuel energy producer and energy services provider that primarily serves the electric power generation industry in the United States. The Company has two principal business units, Coal and Gas. The principal activities of the Coal unit are mining, preparation and marketing of steam coal, sold primarily to power generators, and metallurgical coal, sold to steel and coke producers. As of December 31, 2004, CONSOL Energy produced high-British thermal unit (Btu) bituminous coal from 17 mining complexes in the United States and Australia. The principal activity of the Gas unit is to produce pipeline quality methane gas for sale primarily to gas wholesalers. The Company provides energy services, including terminal services, industrial supply services and coal waste disposal services. It is developing its land assets that it previously used primarily to support its coal operations.
JAN 2007 $70 LEAP CALL VTL-AN @ $9.40
Alternate short-term entry:
Entry $66 (8/29)