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SD $61.41 - SandRidge Energy

A sudden three-day collapse in natural gas stocks on no news gave is an entry in SD. This company is on fire and we saw an $8 bounce from the week's lows.

Company info:

SandRidge Energy, Inc. (SandRidge) is an independent natural gas and oil company with its principal focus on exploration, development and production activities. The Company also owns and operates drilling rigs and a related oil field services company operating under the name Lariat Services, Inc.; gas gathering, marketing and processing facilities, and, through its wholly owned subsidiary PetroSource Energy Company, carbon dioxide (CO2) treating and transportation facilities and tertiary oil recovery operations. The Company is focused on exploration and exploitation of its significant holdings in West Texas that it refers to as the West Texas Overthrust (WTO), a natural gas prone geological region that includes the Pinon Field, and its South Sabino and Big Canyon prospects. SandRidge operates in four segments: exploration and production, drilling and oil field services, midstream gas services and other.
Breakdown trigger: $60 Hit 7/07
Position: 2010 $70 LEAP LWE-AN @ $13.00

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MOS $141.56 - Mosaic Industries

We have played this one before but were stopped out several weeks ago. I believe we got a perfect entry at the long-term support of the 100-day average. Thank you Mr. Bear market. Canaccord Adams issued a buy on the pullback.

Earnings July 28th

Company info:

The Mosaic Company (Mosaic) is a producer of phosphate and potash combined, as well as nitrogen and animal feed ingredients. The Company operates its business through four business segments: phosphates, potash, offshore and nitrogen. The Phosphates segment operates mines and concentrates plants in Florida that produce phosphate fertilizer and feed phosphate, and concentrates plants in Louisiana that produce phosphate fertilizer. The Potash segment mines ad processes potash in Canada and the United States and sells potash in North America and internationally. The Offshore segment produces and markets fertilizer products and provides other ancillary services to wholesalers, cooperatives, independent retailers, and farmers in South America and the Asia-Pacific regions. The Nitrogen segment consists of its equity investment in Saskferco and Mosaics nitrogen sales and distribution activities

Breakdown trigger: $125 hit 7/08

Position: 2010 $160 LEAP Call KCA-AL @ $27.45

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FLR $173.78 - Fluor

The drop back to fill the gap from May-12th gave us our entry at support and all we need the market to do is cooperate. This is an expensive position but Shaw's earnings and spike last week give us hope of a similar fate for Fluor.

Earnings August 11th

Company info:

Fluor Corporation is a holding company that, through its subsidiaries, provides engineering, procurement and construction management (EPCM) and project management services. Fluor serves a number of industries worldwide, including oil and gas, chemical and petrochemicals, transportation, mining and metals, power, life sciences and manufacturing. Fluor is also a primary service provider to the United States Federal Government. It performs operations and maintenance activities for major industrial clients, and also operates and maintains their equipment fleet. The Company is aligned into five principal operating segments: Oil and Gas, Industrial and Infrastructure, Government, Global Services and Power. Fluor Constructors International, Inc., which is organized and operates separately from its business segments, provides unionized management, construction and management services in the United States and Canada, both independently and as a subcontractor on projects to its segments.

Breakdown trigger: $175 hit 7/07

Position: 2010 $200 LEAP Call LLF-AZ @ $35

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ANR $96.87 - Alpha Natural Resources

This was another near perfect entry at support at $80 where ANR spent only one day before blasting off again for a $16 rebound. ANR was the best performing coal stock on the rebound from last week's correction lows.

Company info:

Alpha Natural Resources, Inc. is an Appalachian coal supplier. The Company produces, processes and sells steam and metallurgical coal from eight regional business units, which, as of December 31, 2007, are supported by 32 active underground mines, 26 active surface mines and 11 preparation plants located throughout Virginia, West Virginia, Kentucky, and Pennsylvania, as well as a road construction business in West Virginia and Virginia that recovers coal. The Company is also involved in the purchase and resale of coal mined by others. In 2007, the Company sold a total of 28.5 million tons of steam and metallurgical coal. It owned or leased 617.5 million tons of coal reserves. On December 28, 2006, the Companys subsidiary, Palladian Lime, LLC (Palladian) acquired a 94% ownership interest in Gallatin Materials LLC (Gallatin). On June 29, 2007, it acquired certain coal mining assets in western West Virginia from Arch Coal, Inc. known as Mingo Logan.

Breakdown trigger: $80 hit 7/08

Buy 2010 $100 LEAP Call WDB-AT @ $23.40

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TS $68.05 - Tenaris

Near perfect entry on uptrend support and with oil exploding the amount of drilling in progress increases every day. The weakness was due to a sell off in the Latin American markets. Tenaris is an Argentine stock.

There were rumors making the rounds last week about a pipe shortage. Crews on several rigs in western Colorado were sent home last week because of a shortage of casing. Reportedly there is a 30-day delay in getting steel pipe and drillers are being put on allocation for future orders.

Company info:

Tenaris S.A. (Tenaris) is a global manufacturer and supplier of steel pipe products and related services for the energy industry, as well as for other industrial applications. Its customers include oil and gas companies, as well as engineering companies engaged in constructing oil and gas gathering, transportation, and processing facilities. Its principal products include casing, tubing, line pipe, and mechanical and structural pipes. It operates an integrated worldwide network of steel pipe manufacturing, research, finishing and service facilities with industrial operations in North and South America, Europe, Asia and Africa, and a direct presence in major oil and gas markets. Tenaris is organized in three major business segments: Tubes, Projects and Other. In May 2007, the Company acquired Hydril Corporation (Hydril), a manufacturer of premium connections for steel pipe products. On April 1, 2008, it sold Hydrils pressure control business to General Electric Company.

Breakdown trigger: $65 Hit 7/08

Position: Dec $70 Call TSW-LN @ $6.00


 

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