LNG - $31.25 - Cheniere Energy ** Stop Loss $27.00 **
Cheniere Energy, Inc. is engaged primarily in the business of developing and constructing, and then owning and operating, a network of three onshore liquefied natural gas (LNG) receiving terminals, and related natural gas pipelines, along the Gulf Coast of the United States. The Company's immediate focus is on its LNG receiving terminals being developed in western Cameron Parish, Louisiana on the Sabine Pass Channel and near Corpus Christi, Texas. Cheniere Energy is also engaged, to a limited extent, in oil and natural gas exploration and development activities in the Gulf of Mexico. Exploration efforts are focused on the shallow waters of the Gulf of Mexico offshore of Louisiana and Texas and consist primarily of active interpretation of seismic data and generation of prospects, through participation in the drilling of wells, and through farm-out arrangements and back-in interests whereby the capital costs of such activities are borne primarily by industry partners.
LNG has taken off like a scared rabbit after getting financing approval for the next step in its LNG terminal construction phase. After six months of declines to $25 LNG rocketed back to $30 last week and shows no indications of slowing down. The game has changed for LNG and for Cheniere. All the news is suddenly positive and the shorts are getting pummeled.
The $30 LEAP was quoted at $8.20 with the $35 LEAP at $6.20. I would gladly pay the extra $2 for another $5 in the money at expiration plus an even money strike in case of a future stock split.
Breakout target $31 triggered 11/30/06
Position 2009 $30 LEAP ONP-AF @ $8.50
No insurance: $25 is out of range and $30 is too expensive