New Energy Plays
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New Non-Energy Plays
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New Watch List Plays Triggered
HLX - $8.42 Helix Energy Solutions
A -20% two-day spike triggered our entry at $8.50 with room to spare. No specific news.
Helix Energy Solutions Group, Inc. (Helix) is an international offshore energy company providing reservoir development solutions and other contracting services to the energy market, as well as to other oil and gas properties. Helix operates in the Gulf of Mexico, North Sea, Asia Pacific and Middle East regions. The Contracting Services segment utilizes the vessels and offshore equipment that when applied with the methodologies reduce finding and development (F&D) costs. The Oil and Gas segment is engaged in prospect generation, exploration, development and production activities. On December 11, 2007, the Company’s wholly owned subsidiary Cal Dive (CDI) completed the acquisition of Horizon Offshore, Inc. (Horizon). In July 2007, the Company acquired the remaining 42% interest in Well Ops SEA Pty Ltd. On September 30, 2007, Helix 30% working interest in the Phoenix oilfield, the Boris oilfield and the Little Burn oilfield to Sojitz GOM Deepwater, Inc. (Sojitz).
Breakdown trigger: $8.50, hit 11/12
Position 2010 $10 LEAP Call WAI-AB @ $3.10
Chart of HLX
ENER $27.98 - Energy Conversion Devices
The breakdown entry at $30 was hit on Tuesday and ENER gave back another $10 by Thursday's low. Fortunately most of that was recovered by Friday's close. Zacks and Jefferies reiterated their "buy" on ENER despite the decline.
Energy Conversion Devices, Inc. (ECD) commercializes materials, products and production processes for the alternative energy generation, energy storage and information technology markets. The Company designs, manufactures and sells photovoltaic (PV) products, known as PV or solar laminates that generate renewable energy by converting sunlight into electricity. Solar laminate sales represent more than 90% of the Company’s revenues. It also receive fees and royalties from licensees of its nickel metal hydride (NiMH) battery technology and sell high-performance nickel hydroxide used in NiMH batteries. It has two principal joint ventures that are commercializing technologies invented by ECD: Cobasys LLC, which manufactures and sells rechargeable NiMH batteries, and Ovonyx, Inc., which is commercializing phase-change memory devices through licensing and joint development agreements. The Company operates its business in two segments: United Solar Ovonic and Ovonic Materials.
Breakdown trigger: $35, hit 11/11
Position: 2010 $50 LEAP Call KYU-AJ @ $7.90
Chart of ENER
CMP $52.06 - Compass Minerals
Compass spiked above $60 at the open on Monday after China announced its $565 billion stimulus program. That announcement was quickly forgotten and Compass dipped below $50 on Thursday as the market imploded. After a volatile week we are back where we started and I think Compass will be very strong once a normal market returns.
Compass Minerals International, Inc. (Compass) is a salt producer in North America and the United Kingdom. As of December 31, 2007, the Company operated 10 production and packaging facilities, including the rock salt mine in Goderich, Ontario and a salt mine in the United Kingdom in Winsford, Cheshire. The Company’s product lines include salt and sulfate of potash, and it operates a records management business. Salt consists of sodium chloride, potassium chloride and magnesium chloride. These products are used for highway deicing, dust control, consumer deicing, water conditioning, consumer and industrial food preparation, agricultural and industrial applications. In addition, Compass is a producer of sulfate of potash (SOP), which is used in the production of specialty fertilizers for high-value crops and turf. In the United Kingdom, the Company operates a records management business utilizing excavated areas of its Winsford salt mine with two other locations in London, England.
Breakout trigger: $60.50, hit 11/10
Position: MARCH $70 Call CMP-CN @ $4.50
Chart of CMP
HES $55.50 - Hess Corp
Hess broke out over $62.50 to trigger our entry on Monday. As oil moved below $55 Hess imploded to trade as low as $47.50 on Thursday before rebounding. The rebound was very strong and Hess should continue higher as long as the energy market just remains flat. No specific news.
Hess Corporation (Hess) is a global integrated energy company that operates in two segments: Exploration and Production (E&P) and Marketing and Refining (M&R). The E&P segment explores for, develops, produces, purchases, transports and sells crude oil and natural gas. These exploration and production activities take place principally in Algeria, Australia, Azerbaijan, Brazil, Denmark, Egypt, Equatorial Guinea, Gabon, Ghana, Indonesia, Libya, Malaysia, Norway, Russia, Thailand, the United Kingdom and the United States. The M&R segment manufactures, purchases, transports, trades and markets refined petroleum products, natural gas and electricity. As of December 31, 2007, the Company owned a 50% interest in a refinery joint venture in the United States Virgin Islands, and another refining facility, terminals and retail gasoline stations located on the East Coast of the United States
Breakout trigger: $62.50, hit 11/10
Position: 2010 $80 LEAP Call WHS-AP, $9.70
Chart of HES