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PDE - Pride International

Pride was on the watch list at $44 and missed being triggered on Friday by 6 cents. I am going to take the entry at Friday's close of $44.93. Zacks reiterated a buy rating on PDE on Friday based on their $9.4 billion backlog and their emergence as a pure play deepwater driller. They have sold off their non-core assets to leverage the deepwater play. The market is still valuing them as a shallow water jackup play and they are no longer in that sector. They are a strong takeover target given their small size and sector.

Company Info:
Headquartered in Houston, Texas, Pride International, Inc. is one of the world's largest drilling contractors. Pride provides contract drilling and related services to oil and gas companies worldwide.
With over 7,000 employees, Pride offers a multinational workforce with offices in the United States, Africa, Asia, Europe and South America.
We have positioned our fleet in some of the world's largest and most active exploration and production areas, with a market presence in West Africa (Angola), Latin America (Brazil), the Gulf of Mexico, the Mediterranean and Middle East. Today, we operate a total of 64 rigs.

Buy Jan 2009 $50 Call PDE-AJ currently $3.70

I went with a Jan call instead of a LEAP because an acquisition would limit LEAP appreciation. I wanted to be close to the current price with a cheap option.

 

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