TRA - $54.16 Terra Inds
That was really frustrating. The options chain last week showed the $55 LEAP at about $8.50 but the $60 LEAP we were targeting was showing $13.50. The majority of the option chain was showing the lower prices. I ass-u-me-d that the $60 strike was the wrong price and the other prices were correct. Bad assumption! It turned out that the $60 strike was the only accurate one. On Monday morning all the prices adjusted up to the much higher price. This was obviously a case where the market maker was not keeping his chains updated unless somebody actually tried to buy one. On Monday evening I sent an email to abort the entry since it never hit our $8 target.
I really want to be in Terra and after the early week bounce it declined only slightly and actually moved higher on Friday. I am recommending we bite the bullet and take the entry here. We got the breakout over $50 and it could run from here. If you jumped in last Monday you are way ahead of the game.
Terra Industries Inc. (Terra) is a producer and marketer of nitrogen products, serving agricultural and industrial markets. The Companys business is organized into two segments: Nitrogen Products and Methanol. The Nitrogen Products business produces and distributes ammonia, urea, urea ammonium nitrate solutions, ammonium nitrate and other nitrogen products to agricultural and industrial users. The Methanol business manufactures methanol, which is principally used as a raw material in the production of a variety of chemical derivatives, and in the production of methyl tertiary butyl ether (MTBE). Terra owns a 75.3% interest in Terra Nitrogen Company, L.P. (TNCLP), which, through its subsidiary, Terra Nitrogen, Limited Partnership, operates Terras manufacturing facility at Verdigris, Oklahoma. The Company is the sole general partner and the majority limited partner of TNCLP. On September 14, 2007, the Company formed GrowHow UK Limited, a joint venture with Kemira GrowHow Oyj.
Buy 2010 $60 LEAP Call KMK-AL
FTK - $21.83 Flotek
FTK found some traction and ran all the way to $23.14 before Friday's market action caused some profit taking and a downgrade from a no name firm.
Flotek Industries, Inc. is a global supplier of drilling and production related products and services to the energy and mining industries. The Company's core focus is oilfield specialty chemicals and logistics, downhole drilling tools and downhole production tools. Flotek offers its products primarily through its sales organizations, as well as through independent distributors and agents. The customers for its products and services include oil and natural gas companies, independent oil and natural gas companies, pressure pumping service companies and state-owned national oil companies. Five customers accounted for approximately 34% of its consolidated revenue during the year ended December 31, 2007. The Company's reportable segments are Chemical and Logistics, Drilling Products and Artificial Lift. All three segments market products domestically and internationally.
Breakout trigger: $21.00 Hit 6/17
Position: 2010 $25 LEAP Call YVB-AE @ $5.20
ENER - $76.64 +8.14 Energy Conversion Devices
What a breakout! It appears that rising wedge pattern and their new stock sale powered ENER to a $10 gain during the week with only a minor decline on Friday. The spike came on good news out of the Intersolar 2008 conference in Munich.
Energy Conversion Devices, Inc. manufactures and sells thin-film solar laminates that convert sunlight to energy using proprietary technology. Distributed globally under the UNI-SOLAR brand, the company's products are ideally suited for cost-effective solutions for roofing applications because they are lightweight, durable, flexible, can be integrated directly with building materials, and generate more energy in real-world conditions. ECD also pioneers other alternative technologies, including a new type of nonvolatile digital memory technology that is significantly faster and less expensive, ideal for use in a variety of applications, including cell phones, digital cameras and personal computers.
Breakout trigger: $68.50 hit 6/16
Position: 2010 $80 LEAP Call KYU-AP @ 23.10
SGR - $63.83 Shaw Group
Shaw moved up to edge over $66 and trigger our entry only to fall back to initial support at $63 on Friday. No harm and the trend is still intact.
The Shaw Group Inc. (Shaw) is a diverse engineering, technology, construction, fabrication, environmental and industrial services company. Shaw provides its services to a diverse customer base that includes multinational oil companies and industrial corporations, regulated utilities, independent and merchant power producers, government agencies and other equipment manufacturers. The Company delivers its services from more than 150 locations, including 22 international locations. On January 31, 2007, Shaw acquired all of the stock of Mid-States Pipe Fabrication, Inc. (MSPF). On June 29, 2007, the Company acquired all of the stock of EzeFlow (NJ) Inc., a manufacturer of pipe fittings for the power and process industries. The Company has six business segments: Fossil & Nuclear; Energy and Chemicals (E&C); Environmental and Infrastructure (E&I); Maintenance; Fabrication and Manufacturing (F&M), and Investment in Westinghouse.
Breakout trigger: $66
Buy 2010 $75 LEAP Call YCW-AO