With most energy stocks up strongly over the last few weeks I really don't want to add any at these levels. However, Tenaris is not a true energy play but is in the energy sector. The chart shows an impending breakout over $48.
TS - $48.39 - Tenaris
Tenaris is a supplier of steel pipe and tubing for the energy industry. They have been a very active acquirer picking up Maverick Tube (MCK) last October and the acquisition of Hydril is currently in progress. Lone Star Steel (LSS) was recently acquired by US Steel and the remaining players in the sector are dwindling fast. TS appears to have shaken off the volatility following the Maverick acquisition and found resistance at $48. That resistance is about to break with Friday's close at $48.39. We could see significant acceleration over $50 as the combined companies get up to speed.
Tenaris S.A. is a global manufacturer and supplier of tubular products and services used in the drilling, completion and production of oil and gas and a supplier of tubular products and services used in process and power plants and in specialized industrial and automotive applications. As of September 30, 2006, Tenaris operated under four segments: Seamless, Welded and Other Metallic Products, Energy and Other. On January 31, 2006, Siat S.A., a subsidiary of Tenaris, completed its acquisition of the welded pipe assets and facilities located in Villa Constitucion, province of Santa Fe, Argentina. On October 5, 2006, the Company acquired Maverick Tube Corporation and its subsidiaries. On December 1, 2006, the Company sold a significant ownership in Dalmine Energie. As of December 31, 2006, Tenaris operates under three business segments: Tubes, Projects and Other.
BUY Sept $50 Call TSW-IJ currently $3.80 Stop TS @ $45.50