MDR $52.22 - McDermott Intl
We have played McDermott several times and I dumped it when it failed to recover from the January dip. After reporting earnings in February and beating the street by a nickel the stock has held its gains. Revenue at the offshore oil and gas construction segment jumped 54%. It appears about ready to breakout of resistance at $52 and move higher.
McDermott International, Inc. (MII) is an engineering and construction company with specialty manufacturing and service capabilities. MII is the parent company of the McDermott group of companies, which includes J. Ray McDermott, S.A. (JRMSA) and its consolidated subsidiaries; McDermott Holdings, Inc. (MHI) and its consolidated subsidiaries; McDermott Incorporated (MI), a subsidiary of MHI, and its consolidated subsidiaries; The Babcock & Wilcox Companies (B&WC), a subsidiary of MI; BWX Technologies, Inc. (BWXT), a subsidiary of B&WC, and its consolidated subsidiaries, and The Babcock & Wilcox Company (B&W), a subsidiary of B&WC, and its consolidated subsidiaries. MII is a worldwide energy services company operating in three business segments: Offshore Oil and Gas Construction, Government Operations and Power Generation Systems. In July 2007, JRMSA acquired Secunda International Limited.
Buy: Jan-09 $60 LEAP call OYZ-AL currently $6.90
JEC $80.38 - Jacobs Engineering
JEC finally broke out on Monday to trigger our entry at $82.50 and then ran into stiff resistance at $85. Market weakness on Friday knocked off $3.41 but it was market, not stock specific.
Jacobs Engineering Group Inc. (Jacobs) is a professional services firm in the United States. The Companys business focuses on providing a range of technical, professional and construction services to industrial, commercial, and governmental clients around the world. Jacobs provides four categories of services: Project Services (which include engineering, design, architectural, and similar services); Process, Scientific and Systems Consulting services (which includes services performed in connection with a variety of scientific testing, analysis and consulting activities); Construction services (which encompasses traditional field construction services, as well as modular construction activities, and includes direct-hire construction and construction management services), and Operations and Maintenance services (which includes services performed in connection with operating large, complex facilities on behalf of clients, as well as services involving process plant maintenance).
Breakout trigger: $82.50 hit 2/25
Position: 2009 $90 LEAP Call VJE-AR @ $12.00