New Energy Plays
HLX - Helix Energy Solutions
Helix shares rose last week on news the company was going to sell most of its oil and gas assets and concentrate on its highly profitable drilling services business. Raymond James upgraded HLX to a strong buy on the news saying it was one of the most under valued companies in the oil patch. HLX also owns 58% of Cal Dive International. HLX has accumulated a large portfolio of operating interests in various fields and production facilities. A sale of these non-core assets will produce a huge revenue boost and make the company more of a takeover target.
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).
Buy 2010 $10 LEAP Call WAI-AB currently $2.45
Chart of HLX
ESLR - Evergreen Solar
Evergreen was picked by RBC Capital as one of the top 20 stocks to benefit from the Obama infrastructure plan. Part of the plan is to make office buildings more energy efficient through upgrades to their energy handling and the addition of solar.
Evergreen has been beaten severely in the recent market decline and makes a good stock to add to our portfolio as a stock rather than a LEAP.
Evergreen Solar, Inc. develops, manufactures and markets solar power products enabled by its String Ribbon technology. The Company’s revenues are primarily derived from the sale of solar modules, which are assemblies of photovoltaic cells that have been electrically interconnected and laminated in a physically durable and weather-tight package. The Company sells its products using distributors, systems integrators and other value-added resellers, who often add value through system design by incorporating its modules with electronics, structures and wiring systems. Its products are sold primarily in the United States, Germany and Korea. Evergreen Solar, Inc. manufactures and markets solar power products, including solar cells, panels and systems. It markets and sells all solar panels manufactured by EverQ under the Evergreen Solar brand, as well as manages customer relationships and contracts.
Too cheap for LEAPS, buy the stock instead.
BUY stock in ESLR currently $2.75
Chart of ESLR
CSIQ - Canadian Solar
Canadian not only supplies solar for commercial and residential applications but also sells those solar panels you see on the top of road signs, traffic lights, warning lights, etc. They are diversified and don't rely on only one product.
Canadian Solar Inc. (CSI) designs, develops, manufactures and sells solar cell and module products that convert sunlight into electricity for a variety of uses. The Company conducts all of its manufacturing operations in China. The Company’s products include a range of standard solar modules built to general specifications for use in a range of residential, commercial and industrial solar power generation systems. It also designs and produces specialty solar modules and products based on its customers’ requirements. Specialty solar modules and products consist of customized modules that its customers incorporate into their own products, such as solar-powered bus stop lighting, and complete specialty products, such as solar-powered car battery chargers. It sells its products under its CSI brand name and to original equipment manufacturing (OEM) customers under their brand names.
Stock too cheap for leaps, buy the stock.
BUY Stock in CSIQ currently $5.55
Chart of CSIQ
New Non-Energy Plays
New Watch List Plays Triggered
FXI - iShares China Index
The China Index ETF spiked to $29 on Monday on positive economic news from China and then went nowhere all week. I believe the bottom is behind us but there could still be some rocky moves as we near year-end.
This ETF tracks the 25 largest and most liquid Chinese companies trading on the Hong Kong stock exchange. With assets of some US$3 billion, iShares FXI has its largest holdings in financial services (30%), energy (22%), telecommunications (21%), and business services (13%). iShares FXI has over 60% of its assets concentrated in its top 10 stocks. China Mobile (10.4%) and Petro China (9%) are its two largest holdings, followed by China Life Insurance (8%).
Breakout trigger: $29, hit 12/08
Position: 2010 $35 LEAP Call YOF-AI @ $5.10
Chart of FXI
POT $66.55 +8.55 - Potash
POT rebounded +8 after raising their estimates the prior week. It appears traders have started moving back to the commodity stocks for 2009. On Tuesday POT joined Mosaic and Uralkai in announcing production cuts of 20% beginning in January. POT said it was only temporary due to a slowdown in credit by the buyers. With few companies able to obtain credit in any form the number of waiting buyers has shrunk.
Potash Corporation of Saskatchewan Inc. is an integrated fertilizer and related industrial and feed products company. The Company’s potash is produced from six mines in Saskatchewan and one mine in New Brunswick. Of these mines, it owns and operates five in Saskatchewan and the one in New Brunswick. Its nitrogen operations involve the production of nitrogen fertilizers and nitrogen feed and industrial products, including ammonia, urea, nitrogen solutions, ammonium nitrate and nitric acid. It has nitrogen facilities in Georgia, Louisiana, Ohio and Trinidad. The Company’s phosphate operations include the manufacture and sale of solid and liquid phosphate fertilizers, animal feed supplements and industrial acid, which is used in food products and industrial processes. It indirectly holds all outstanding interests in PCS Joint Venture, Ltd., which formerly manufactured, processed and distributed fertilizer and other agricultural supplies from plants located in Florida and Georgia.
Breakout trigger: $58, hit 12/09
Position: 2010 $80 LEAP Call WPT-AP @ $17.30
Chart of POT