HOS - $39.59 - Hornbeck Offshore Services
Hornbeck declined just enough to trigger our LEAP entry on Friday at $39. There was no news for the week and the -$2 drop from Tuesday's highs was very respectable given the market conditions.
Hornbeck Offshore Services, Inc. provides offshore supply vessels (OSVs) to customers in the offshore oil and gas industry, primarily in the United States Gulf of Mexico and in select international markets. The focus of the Company's OSV business is on complex exploration and production activities, which include deepwater, deep well and other logistically demanding projects. Such other projects include, among others, the construction, maintenance and repair of offshore infrastructure. Hornbeck Offshore Services, Inc. is also a transporter of petroleum products through its tug and tank barge segment serving the energy industry, primarily in the northeastern United States and Puerto Rico. Oil companies, independent oil and gas exploration, development and production companies, and oil service companies constitute the majority of its customers for its OSV services, while refining, marketing and trading companies constitute the majority of its customers for its tug and tank barge services.
Breakdown trigger: $39.00 hit 6/08
Position: 2009 $40 LEAP Call ZIG-AH @ $8.00