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GG $38.14 - Goldcorp ** No Stop **

That was not how I wanted to get an entry on Goldcorp. The stock spiked up on Monday to open at $36.20 and hit our entry trigger at $36. Still we are profitable at Friday's close and GG looks like it is coiling and ready to break for another big gain.

Geopolitical problems and the sliding dollar are pushing gold higher. I continue to hear prices in the $800 to $1000 range over the next 18 months. Let's hope they are right.

Company Info:

Goldcorp Inc. (Goldcorp) is a North American-based gold producer engaged in exploration, extraction and processing of gold. The Company's primary asset is its Red Lake Mine, a gold mine in Canada. It's other operations include the Bajo de la Alumbrera gold-copper mine (the Alumbrera Mine) in Argentina; a 100% interest in each of the San Dimas gold-silver mine (the San Dimas Mine); the San Martin gold-silver mine (the San Martin Mine); the Nukay gold-silver mine (the Nukay Mine) in Mexico, and a 100% interest in the Peak gold mine (the Peak Mine) in Australia. Goldcorp also has 100% interests in the Los Filos gold development stage project (the Los Filos Project) in Mexico and the Amapari gold project (the Amapari Project) in Brazil. Goldcorp also owns approximately 59% of Silver Wheaton Corp. (Silver Wheaton), a mining company with 100% of its revenue from silver production.

Breakout trigger $36.00 hit on 5/01
Position: 2008 $35 LEAP Call LGX-AG @ $10.00 5/01

Entry $36.00 (5/01)

TS $44.44 - Tenaris ** Stop Loss $40 **

Tenaris was even more frustrating than Goldcorp. TS gapped open on Monday to trigger our entry at $47 but then collapsed on an earnings glitch back to support at $43. That -$4 dip knocked our option for a -$2 loss before I even got the play published.

The gap and crap was due to earnings they announced on Tuesday. Profits jumped from $280 million to $441 million for Q1 but Tenaris said additional earnings were held back due to delays in pipeline projects in Brazil and Argentina. Revenue jumped from $1.45 billion to $1.78 billion despite the delays.

This earnings hiccup caused TS to drop like a rock on Wednesday. We saw buyers come back into the stop on Friday for a gain of $1.14.

Company Info:

Tenaris S.A. is a global manufacturer of seamless steel pipes for the oil and gas industry and a global supplier of seamless steel pipes for process and power plants and for industrial and automotive applications. It is also a regional supplier of welded steel pipes for oil and gas pipelines in South America. Tenaris focus on providing end-user customers a service that integrates manufacturing, procurement, distribution and on-time delivery of products throughout the world. Incorporated in Luxembourg, the Company has manufacturing facilities in Argentina, Brazil, Canada, Italy, Japan, Mexico, Romania and Venezuela. It also has a proprietary global service and distribution network in over 20 countries. Tenaris' customers include many of the world's major oil and gas companies, as well as a large number of engineering and industrial companies.

Breakout trigger $47.00 hit on 5/01
Position: Dec $52 Call TSW-LX @ $6.20 5/01

Entry $47.00 (5/01)

 

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