CAM $43.99 - Cameron *** Stop Loss $39 ***
Nice dip to support at $40 triggered our reentry into CAM at $42.50. No news.
Cameron International Corp., formerly Cooper Cameron Corporation, is an international manufacturer of oil and gas pressure control and separation equipment, including valves, wellheads, controls, chokes, blowout preventers and assembled systems for oil and gas drilling, production and transmission used in onshore, offshore and subsea applications and provides oil and gas separation, metering and flow measurement equipment. It is also a manufacturer of centrifugal air compressors, integral and separable gas compressors and turbochargers. The Company's operations are organized into three separate business segments: Drilling & Production Systems (DPS), formerly the Cameron segment; Valves & Measurement (V&M), formerly the Cooper Cameron Valves segment, and Compression Systems (CS), formerly the Cooper Compression segment. In January 2006, the Company acquired the assets and liabilities of Caldon Company.
Breakdown trigger: $42.50, hit 1/22
Position: 2009 $50 LEAP Call OKA-AJ @ $5.50
PBR $104.62 - Petrobras *** Stop Loss $88 ***
Petrobras did not decline in the global meltdown as severely as the other stocks. Strong support at $90 kept us from being triggered on the dip but we did take a breakout entry on the rebound. Petrobras is in a very strong position among the global giants and should continue higher assuming there are no more SocGen disasters.
Petroleo Brasileiro S.A. - Petrobras (Petrobras) is a wholly owned enterprise of the Brazilian Government, which is responsible for all hydrocarbon activities in Brazil. The Company is engaged in a range of oil and gas activities. Petrobras operates in six segments: exploration and production, supply, distribution, gas and power, international and corporate. In June 2007, Petrobras announced that it completed transfer of all of the shares of Petrobras Bolivia Refinancion S.A. to YPF S.A. In March 2007, the Company, Braskem S.A. and Ultrapar Participacoes S.A. announced the acquisition of Grupo Ipiranga. In September 2006, the Company announced the closing of the acquisition by Petrobras America, Inc. (PAI), its wholly owned subsidiary in the United States Gulf of Mexico, of 50% of Pasadena Refining System Inc. In June of 2006, it completed the acquisition of 66% of Gaseba Uruguay-Grupo Gaz de France S.A. In November 2007, the Company acquired Suzano Petroquimica S.A.
Breakout trigger: $101.50, hit 1/24
Position: 2009 $110 LEAP Call XVQ-AB @ $12.70
VLO $54.59 - Valero *** Stop Loss $47 ***
Nice dip to support at $50 for our reentry. VLO had a refinery fire in Aruba last week with some drop in production. Zacks reiterated a buy rating on VLO saying the recent weakness has made VLO particularly attractive ahead of the summer demand cycle. Their target price is $75.
Valero Energy Corporation owns and operates 18 refineries located in the United States, Canada and Aruba that produce refined products, such as reformulated gasoline blendstock for oxygenate blending, gasoline meeting the specifications of the California Air Resources Board (CARB), CARB diesel fuel, low-sulfur and ultra-low-sulfur diesel fuel, and oxygenates (liquid hydrocarbon compounds containing oxygen). It also produces conventional gasolines, distillates, jet fuel, asphalt, petrochemicals and other refined products. It markets branded and unbranded refined products on a wholesale basis in the United States and Canada through a bulk and rack marketing network. It sells refined products through a network of approximately 5,800 retail and wholesale branded outlets in the United States, Canada and Aruba. During the year ended December 31, 2006, it sold all of its ownership interest in Valero GP Holdings, LLC. In July 2007, the Company sold its Lima, Ohio refinery to Husky Energy Inc.
Breakdown trigger: $50.00, hit 1/23
Position: 2009 $60 LEAP Call VHB-AL @ $5.00
FLS $82.23 - Flowservev *** Stop loss $74 ***
Excellent entry on the dip. FLS just reported record bookings for Q4 up +19% to $1.1 billion. They also reported a record 19% increase for all of 2007.
Flowserve Corporation (Flowserve) is a manufacturer and aftermarket service provider of flow control systems. The Company develops and manufactures precision-engineered flow control equipment, such as pumps, valves and seals, for critical service applications. It produces engineered and industrial pumps, industrial valves, control valves, nuclear valves, valve actuators and precision mechanical seals, and provides a range of related flow management services worldwide, primarily for the process industries. Flowserve Corporation offers a range of aftermarket equipment services, such as installation, advanced diagnostics, repair and retrofitting. The Company operates through three business segments: Flowserve Pump Division (FPD), Flow Control Division (FCD) and Flow Solutions Division (FSD). In June 2006, the Company acquired HydroTechnik Olomouc, s.r.o., a mechanical seal manufacturer based in Olomouc, Czech Republic.
Breakdown trigger: $77.50, hit 1/22
Position: July $90 Call FLS-GR @ $6.00