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New Plays

New Plays

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UNT $51.45 - Unit Corp

Unit formed a nice base at $45 and finally broke over resistance at $50 last week. It appears that resistance has now turned into support with $50 as a bottom on Thr/Fri.

Company Info:

Unit Corporation (Unit), through its three principal wholly owned subsidiaries, Unit Drilling Company, Unit Petroleum Company and Superior Pipeline Company, L.L.C., contracts to drill onshore oil and natural gas wells for its own account and for others (land contract drilling); explores, develops, acquires and produces oil and natural gas properties for its own account (oil and natural gas exploration), and buys, sells, gathers, processes and treats natural gas for its own account and for third parties (mid-stream). Units existing contract drilling operations are focused primarily in the natural gas producing provinces of the Oklahoma and Texas areas of the Anadarko and Arkoma Basins, the Texas Gulf Coast, the North Texas Barnett Shale and the Rocky Mountain regions. Units primary exploration and production operations are also conducted in the Anadarko and Arkoma Basins and in the Texas Gulf Coast area with additional properties in the Permian Basin.

Breakout trigger: $52.00 hit 02/04

Position: Sept $55 Call UNT-IK @ $3.80

New Non-Energy Plays

ATI $76.62 - Allegheny Technology

ATI is rebounding strongly out of the January lows and overcame some earnings challenges two weeks ago. The outlook from ATI was strong and the specialty metals business is fairly recession proof. There is far more demand than the few vendors can supply and products are on allocation in many sectors. ATI is approaching resistance at $80 but the strength of the rally in the face of an ugly market is encouraging.

Company Info:

Allegheny Technologies Incorporated (ATI) is a diversified specialty metals producer. The Company operates in three segments: High Performance Metals, Flat-Rolled Products and Engineered Products. The High Performance Metals segment produces, converts and distributes a range of high-performance alloys, including nickel and cobalt-based alloys and superalloys, titanium and titanium-based alloys, zirconium, hafnium, niobium, nickel-titanium and their related alloys. The Flat-Rolled Products segment produces, converts and distributes stainless steel, nickel-based alloys, and titanium and titanium-based alloys. The Engineered Products segment produces tungsten powder, tungsten heavy alloys, tungsten carbide materials and carbide cutting tools. ATIs products are used in various markets. These markets include aerospace, defense, chemical process industry, oil and gas, electrical energy and medical.

Buy: 2009 $90 LEAP Call OYG-AR currently $8.90


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