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MDR - McDermott Intl

McDermott shot up on Wednesday after they announced they won a 3-year contract from the DOE for $3.3 billion to manage a liquid waste program. They have an optional 2 yr addition that could take the award to $5 billion. We were triggered on the spike and paid too much for the option but the company is expected to benefit from Obama's infrastructure and clean energy program as well.

Company Info:

McDermott International, Inc. is an engineering and construction company with specialty manufacturing and service capabilities and is the parent company of the McDermott group of companies, including J. Ray McDermott, S.A. (JRMSA) and The Babcock & Wilcox Company (B&W). The Company operates in three business segments: Offshore Oil and Gas Construction, Government Operations and Power Generation Systems. On July 27, 2007, the Company acquired Secunda International Limited. On May 1, 2007, it acquired Marine Mechanical Corporation.

Breakout trigger: $10.50, hit 12/17

Position: 2010 $12.50 LEAP Call YAE-AV @ $3.40

Chart of MDR
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