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New Plays

New Plays

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New Non-Energy Plays
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SPWR $73.63 7.63 - SunPower

Talk about perfect timing, wow! I added this play last weekend and Southern California Edison chose this week t announce a 250-megawatt solar project in California that will consist of two square miles of solar panels. That turned up the heat on the solar stocks and the race was on. That single project is more than the entire U.S. production of solar cells in 2006.

Here is the story

Company Info:

SunPower Corporation (SunPower) is a vertically integrated solar products and services company that designs, manufactures and markets high-performance solar electric power technologies. Its solar power products are sold through its components business segment, or its components segment. In January 2007, it acquired PowerLight Corporation PowerLight, known as SunPower Corporation, Systems (SP Systems), which developed, engineered, manufactured and delivered large-scale solar power systems. These activities are performed by its systems business segment, or its systems segment. Its solar power systems, which generate electric energy, integrate solar cells and panels manufactured by it, as well as other suppliers. It operates in two segments: components segment and Systems segments.

Breakout trigger: $66 (hit 3/24)

LEAP Call Spread
Long 2010 $80 LEAP Call LMO-AP @ $20.00
Shrt 2010 $130 LEAP Call LMO-AW @ $8.70

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CY 23.01 1.51 - Cypress Semi *** Stop Loss $21.50 ***

Cypress is a major owner of SPWR stock and benefited from the solar news. The volatility is much lower on Cypress than SunPower and those looking for a safer play should consider this position instead of SPWR.

Company Info:

Cypress Semiconductor Corporation (Cypress) is a broad-line semiconductor company. The Company delivers mixed-signal, programmable solutions. Its offerings include the Programmable System-on-Chip (PSoC) products, universal serial bus (USB) controllers, general-purpose programmable clocks and memories. Cypress also offers wired and wireless connectivity solutions. Cypress serves numerous markets, including consumer, computation, data communications, automotive and industrial. As of December 30, 2007, Cypress operated five business segments: Consumer and Computation Division, Data Communications Division, Memory and Imaging Division, SunPower Corporation (SunPower) and Other. During the fiscal year ended December 30, 2007 (fiscal 2007), SunPower completed the acquisition of PowerLight Corporation (PowerLight), known as SunPower Corporation, Systems.

Breakout trigger: $21.50 (hit 3/24)

Position 2010 $25 LEAP Call WSY-AE @ $4.90

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TOL $22.46 -2.54 - Toll Brothers *** Stop Loss $21.50 ***

This was not a fun week for the builders. After spiking to new 7-month highs on Monday the rest of the week was all down hill. The recession and housing worries came back to the market and overshadowed the Fed moves the prior week. Can I have my entry back please?

Company Info:

Toll Brothers, Inc. is engaged in designing, building, marketing and arranging finance for single-family detached and attached homes in luxury residential communities. The Company is also involved, directly and through joint ventures, in projects where it is building, or converting existing rental apartment buildings into high-, mid- and low-rise luxury homes. During the fiscal year ended October 31, 2007 (fiscal 2007), the Company delivered 7,023 homes from 385 communities. In fiscal 2007, the Company has introduced 70 new single-family detached models, 28 new single-family attached models and 32 new condominium units. The four segments operated by the Company includes the North, the Mid-Atlantic, the South and the West.

Breakout trigger: $25

There was a wrong symbol last week. I wrote $30 LEAP but put down the $25 symbol. Since the trigger was $25 I hope everyone realized that I was probably not buying an ATM option and followed the description and not the symbol.

Position: 2010 $30 LEAP Call YKW-AF @ $5.40


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New Watch List Plays Triggered
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MDR - $55.65 4.65 McDermott Intl ** No Stop **

The decision to jump back into MDR appeared to be the right one. There were nine news items on MDR this week and all on contract awards. Since this is a spread and not a straight LEAP play I am not putting a stop on it today.

Company Info

McDermott International, Inc. is an engineering and construction company with specialty manufacturing and service capabilities and is the parent company of the McDermott group of companies, including J. Ray McDermott, S.A. (JRMSA) and The Babcock & Wilcox Company (B&W). The Company operates in three business segments: Offshore Oil and Gas Construction, Government Operations and Power Generation Systems. On July 27, 2007, the Company acquired Secunda International Limited. On May 1, 2007, it acquired Marine Mechanical Corporation.

Breakout trigger: $51.00 (hit 3/24)

LEAP Call Spread
Long 2009 $55 LEAP Call OYZ-AK @ $8.28
Shrt 2009 $75 LEAP Call OYZ-AO @ $3.10


 

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