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TSO - $119.17 +11.56 - Tesoro

Finally an entry on TSO. The pullback from the prior week found a bottom and our breakout entry at $110 was triggered just after the open on Monday. TSO charged ahead for a +9 point gain for the week. TSO has seen four downgrades on valuation in the last month from C, FBR, Deutsche Securities and BSC. That slowed them for only a couple days and now it is already ten points higher ahead of peak gasoline season. No complaints here.

Company info:

Tesoro Corporation (Tesoro) is an independent petroleum refiner and marketer with two operating segments: refining, which is engaged in refining crude oil and other feedstocks at its six refineries in the western and mid-continental United States and selling refined products in bulk and wholesale markets (refining), and retail, which is engaged in selling motor fuels and convenience products in the retail market through its 460 branded retail stations in 18 states. Through its refining segment, the Company produces refined products, primarily gasoline and gasoline blendstocks, jet fuel, diesel fuel and heavy fuel oils for sale to a variety of commercial customers in the western and mid-continental United States. Tesoro's retail segment distributes motor fuels through a network of retail stations, primarily under the Tesoro and Mirastar brands.

Earnings schedule: May 3rd, est $1.87

Breakout target: $110 hit 10:AM on 4/23/07
Position: 2009 $120 LEAP Call ZGC-AD @ $16.68

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ATW $64.39 +4.92 - Atwood Oceanics

We managed another nice breakout entry on Atwood last Monday and two days later ATW began a +$5 sprint higher on the earnings strength from other drillers like Diamond Offshore. ATW reports on May 8th and they are expected to turn in a great report.

Interesting article in Investors Business Daily regarding Atwood.
http://biz.yahoo.com/ibd/070418/newamer.html?.v=1

Company Info:

Atwood Oceanics, Inc. is engaged in the international offshore drilling, and completion of exploratory and developmental oil and gas wells and related support, management and consulting services. The Company's operations include eight offshore mobile drilling units located in five regions of the world, such as offshore southeast Asia, offshore Africa, offshore Australia, the Black Sea and the United States Gulf of Mexico. It also manages two self-contained platform rigs. During the fiscal year ended September 30, 2006 (fiscal 2006), 93% of its contract revenues were derived from foreign operations. The submersible RICHMOND is its only drilling unit working in the United States waters. The Company supports its operations from its Houston headquarters and offices located in Australia, Malaysia, Egypt, Malta, Indonesia, West Africa, Singapore and United Kingdom.

Earnings schedule: May 8th est $1.08

Breakout trigger $60.50 hit 4/23/07
Position: 2009 $70 LEAP Call ZFJ-AN @ $6.50


 

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