Option Investor
New Plays

Positive Volatility, What a Change

Printer friendly version

New Energy Plays

FTK - Flotek

Flotek appears to have found a bottom and unless drilling comes to a halt their services should remain in strong demand.

Company Info:

Flotek Industries, Inc. is a global supplier of drilling and production related products and services to the energy and mining industries. Its 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.

Options on FTK cost nearly as much as the stock and time decay works against you. Just buy the stock. At $3 it is cheaper than any LEAP.

BUY the STK of FTK currently $3.01

Chart of FTK
[Image 1]

CLNE - Clean Energy Fuels

Clean Energy is the leading provider of natural gas (CNG and LNG) for transportation in North America. It has a broad customer base in the refuse, transit, ports, shuttle, taxi, trucking, airport and municipal fleet markets, fueling more than 14,000 vehicles daily at over 170 strategic locations across the United States and Canada. With the sudden surplus of natural gas it will be easier to convince companies to switch to the cleaner, cheaper fuel. The Clean Truck Program at California's ports is planning to switch out 8,000 diesel trucks for Nat Gas trucks over the next five years. This is just one program and CLNE has a major jump on everyone else.

Company Info:

Clean Energy Fuels Corp. (Clean Energy) is a provider of natural gas as an alternative fuel for vehicle fleets in the United States and Canada. The Company offers a solution to enable customers to run their fleets on natural gas. It designs, builds, finances and operates fueling stations, and supplies customers with compressed natural gas (CNG) and liquefied natural gas (LNG). The Company also helps them acquire and finance natural gas vehicles, and obtain local, state and federal clean air rebates and incentives. The Company serves fleet vehicle operators in a variety of markets, including public transit, refuse hauling, airports, taxis, seaports, and regional trucking. It generates revenues primarily by selling CNG and LNG, and to an extent by building, operating and maintaining CNG and LNG fueling stations. In August 2008, Clean Energy Fuels Corp. announced that it acquired Dallas Clean Energy LLC (DCE) from Camco International Ltd.

Options on CLNE cost nearly as much as the stock and time decay works against you. Just buy the stock. At $5 it is cheaper than any LEAP.

BUY stock of CLNE currently $4.84

Chart of CLNE
[Image 2]

New Non-Energy Plays


New Watch List Plays Triggered

HPQ $35.28 - Hewlett Packard

We got the pullback from Monday's gap open to trigger our entry at $33 on Tuesday. HPQ closed on Friday near the high for the week despite a downgrade of the sector by JPM. The broker said PC sales could decline sharply in 2009 led by a 19% drop in desktops while laptop computers could rise by 10%. HPQ has already affirmed stronger guidance for 2009 so evidently they are looking at business from a different perspective than JPM.

Company Info:

Hewlett-Packard Company (HP), is a provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses (SMBs) and large enterprises, including in the public and education sectors. HP’s offerings span personal computing and other access devices; imaging and printing-related products and services; enterprise information technology infrastructure, including enterprise storage and server technology and software that optimizes business technology investments, and multi-vendor customer services, including technology support and maintenance, consulting and integration and outsourcing services. During the fiscal year ended October 31, 2007 (fiscal 2007), its operations were organized into seven business segments: Enterprise Storage and Servers (ESS), HP Services (HPS), HP Software, the Personal Systems Group (PSG), the Imaging and Printing Group (IPG), HP Financial Services (HPFS) and Corporate Investments.

Breakdown trigger: $33, hit 11/25

Position: 2010 $40 LEAP Call WPW-AH @ $5.60

Chart of HPQ
[Image 3]

Leaps Trader Play Archives