BHP - $54.80 - BHP Billiton ** Stop Loss $47.50 **
NHP has declined from nearly $70 to hit $50 on Thursday. That was enough to trigger our entry at $55. The 200-day average is currently $49 and I put the stop just under that level.
BHP Billiton Limited is a diversified resources group. The Company has seven business units, or Customer Sector Groups: Petroleum, which explores for, produces, processes and markets hydrocarbons, including oil, gas and liquefied natural gas; Aluminium, which explores for and mines bauxite, and processes and markets aluminium and alumina; Base Metals, which explores for, mines, processes and markets copper, silver, zinc, lead, uranium and copper by-products, including gold and molybdenum; Carbon Steel Materials, which explores for, mines, processes and markets metallurgical coal, iron ore and manganese used in the production of carbon steel; Diamonds and Specialty Products, which explores for and mines diamonds and titanium minerals; Energy Coal, which explores for, mines, processes and markets energy coal for use in electricity generation, and Stainless Steel Materials, which explores for, mines, processes and markets nickel, which is used in the production of stainless steel.
Breakdown target: $55 hit 8/15/07
Position: 2010 $70 LEAP Call LPH-AN @ $9.00
NOV - $108.50 - National Oilwell Varco ** Stop Loss $95.00 **
In an amazing bout of selling NOV plunged more than $12 on Thursday and triggered our entry at $100. I view this as a gift after the strong upward move over the last 7 months. Hopefully everyone else feels the same way and support at $100 will hold.
National Oilwell Varco, Inc. (NOV) is a worldwide provider of equipment and components used in oil and gas drilling and production operations, oilfield services, and supply chain integration services to the upstream oil and gas industry. The Company operates in three segments: Rig Technology, Petroleum Services & Supplies, and Distribution Services. The Rig Technology segment designs, manufactures, sells and services complete systems for the drilling, completion and servicing of oil and gas wells. The Petroleum Services & Supplies segment provides a variety of consumable goods and services used to drill, complete, remediate and workover oil and gas wells, service pipelines, flowlines and other oilfield tubular goods. The Distribution Services segment provides maintenance, repair and operating supplies, and spare parts. In March 2006, NOV acquired Soil Recovery A/S. In November 2006, it acquired Rolligon Ltd. In December 2006, it acquired 87% of NQL Energy Services Inc.
Breakdown target: $100 hit 8/16/07
Position: FEB $110 Calls NOV-BB @ $9.70
CFC - $21.32 - Countrywide Financial ** Stop Loss $15 **
Countrywide was pummeled last week on rumors they would be forced to declare bankruptcy due to the debt wreck. They exercised their entire $11.5 million short term credit line to the surprise of the 40 bank consortium that arranged it a long time ago. The CEO said they had an additional $50 billion in available long term credit on 8/03.
I believe Countrywide has a rocky road ahead but they will come out on top once the mortgage market opens up again. They are likely to face serious layoffs and a sharp reduction in revenue as they revert to primarily agency qualified paper.
Countrywide Financial Corporation (Countrywide), incorporated on February 6, 1987, through its subsidiaries, is engaged in mortgage lending and other real estate finance-related businesses, including mortgage banking, banking and mortgage warehouse lending, dealing in securities and insurance underwriting. The Company has five segments: Mortgage Banking, which originates, purchases, sells and services non-commercial mortgage loans; Banking, which takes deposits and invest in mortgage loans and home equity lines of credit; Capital Markets, which operates an institutional broker-dealer that primarily specializes in trading and underwriting mortgage-backed securities; Insurance, which offers property, casualty, life and disability insurance as an underwriter and as an insurance agency, and Global Operations, which licenses technology to mortgage lenders in the United Kingdom. During the year ended December 31, 2006, Mortgage banking accounted for 48% of the Company's pre-tax earnings.
Breakdown target $20.00 hit 8/15/07
Position: 2010 $30 LEAP Call YJD-AF @ $7.00
CCJ - $36.42 - Cameco ** Stop Loss $30 **
Strong earnings, major producer, the world is consuming more uranium than is currently produced. CCJ reported earnings on July 30th that showed an increase in revenue of +74% and earnings of +181% for the quarter. The stock has been under pressure since the hedge fund crisis caused the selling of some uranium stockpiles and a drop in uranium prices for the first time in 46 months. This is only temporary since more uranium is used than is actually produced. Stockpiles from the nuclear arms race period are expected to be depleted within two years and prices will rocket higher when that happens.
Cameco Corporation (Cameco) is primarily engaged in the exploration for and the development, mining, refining and conversion of uranium for sale as fuel for generating electricity in nuclear power reactors in Canada and other countries. The Company has a 31.6% interest in Bruce Power L.P. (BPLP), which operates the four Bruce B nuclear reactors in Ontario. The Company wholly owns Zircatec Precision Industries, Inc., whose primary business is the fabrication of nuclear fuel bundles. Cameco's 52.7% subsidiary Centerra Gold Inc. (Centerra) is involved in the exploration for and the development, mining and sale of gold. Cameco has four segments: uranium, fuel services, nuclear electricity generation and gold. In June 2006, the Company acquired a 19.5% interest in UNOR Inc, whose principal properties are 226 mineral claims in northwestern Nunavut on the Hornby Basin.
Breakdown target: $35 Hit 8/16/07
Position: 2010 $50 LEAP Call LTA-AJ @ $7.20