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CHK $32.26 -0.78 Chesapeake Energy

Gas prices are crushing Chesapeake even though they are over 59% hedged for Q3/A4 at over $8.66 per mcf. No news.

CHK was recently upgraded to 5 stars by Morningstar.

Link to Enercom presentation

Position: 2010 $35 LEAP Call WZY-AG @ $6.60 ** No Stop on LEAP **

Insurance put:
Oct $30 Put CHK-VF @ 90 cents. Profit stop $28

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HP $31.49 +0.07 Helmerich & Payne *** Stop Loss $27.50 ***

No weakness in HP and it is creeping back to resistance at $31.50. No news other than a great looking chart.

Enercom presentation here

Position: Jan 2009 $35 LEAP Call ZQA-AG @ $4.50

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HERO $25.44 -$1.53 Hercules Offshore ** Stop Loss $24.00 **

Hercules took a pounding on Thr/Fri after a SVP resigned from the company. Lehman Brothers initiated coverage on HERO on Monday with an overweight rating and it did not help. No other news and no specific reason for the decline.

Enercom presentation

Position: 2008 April $30 Call HIQ-DF @ $3.00

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GLBL $24.18 +0.18 Global Industries ** Stop Loss $18.50 **

Global shook off Tuesday's dip and continued to creep higher as it overcomes some dedicated selling as it moves higher. Eventually whoever is unloading a large position will run out of stock and I think a breakout will appear. The 100-day average at $24.18 is exactly where it closed on Friday. There was no news.

Enercom presentation

Position: 2008 March $25 Call GQO-CE @ $3.30

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BHP - $63.15 +0.86 BHP Billiton ** Stop Loss $47.50 **

After a +$7 gain in the prior week any gain this week was appreciated and definitely unexpected. No specific news.

Breakdown target: $55 hit 8/15/07

Position: 2010 $70 LEAP Call LPH-AN @ $9.00

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NOV - $128.00 +7.00 National Oilwell ** Stop Loss 115.00 **

NOV continues to amaze us with its strong performance. After a +$12 run the prior week NOV added another $7 to hit $130 intraday on Friday. No specific news but positive sector news on oil service stocks helped power the gains.

2:1 split date: Sept 28th. Exit before the split

Breakdown target: $100 hit 8/16/07

Position: FEB $110 Calls NOV-BB @ $9.70

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CCJ - $40.38 +0.64 Cameco ** Stop Loss $30 **

CCJ is very close to a breakout over resistance at $40.50. It inked a deal to acquire 10$ of Western Uranium (WUC) and a 70% joint interest in WUC properties. Cameco continues to add to its exploration properties at a time when uranium prices are soft. They also signed additional mining agreements with the Kyrgyz government for additional rights to properties owned by Kyrgyzaltyn. Both those names look like I had my fingers on the wrong keys when typing. I have no idea where Kyrgyz is on a world map but I am glad Cameco is profiting from their knowledge.

Breakdown target: $35 Hit 8/16/07

Position: 2010 $50 LEAP Call LTA-AJ @ $7.20


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Non-Energy Positions
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RIMM - $85.41 +3.55 - Research in Motion

RIMM continues to rocket higher driven by its recent 3:1 split and constant news of a burgeoning subscriber base. There was no specific news but competitors can't seen to catch up.

For initial commentary see the July 1st newsletter.

Earnings schedule: Sept 27th.

Breakdown trigger: $56.00 hit 6/25

Call spread pre-split:
Position: LONG 2009 $180 LEAP Call VHO-AP @ $32.60
Position: SHORT 2009 $230 LEAP Call VHO-AF @ $10.47

Call spread post-split:
Position: LONG (3) 2009 $60 LEAP Call VHO-AL @ $10.87
Position: SHORT (3) 2009 $76 LEAP Call VHO-AU @ $ 3.62

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BSC $108.66 -8.44 - Bear Stearns *** Stop Loss $97 ***

BSC was hammered by the credit crunch and fears they will report devastating earnings on the 13th. Continue to keep the faith and we could be rewarded if they are better than the scorched earth view everyone is expecting.

Earnings are Sept-13th.

Breakdown target $100 hit 8/06/07

Position: 2010 $120 LEAP Call YBO-AD @ $25.60

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CFC - $19.85 -1.15 Countrywide Financial ** Stop Loss $15 **

Countrywide is holding just over the $18 exercise price Bank America worked out when investing $2 billion in CFC. All the damage appears to have been done and Countrywide is still funding loans. With Bank America behind them it makes the process of selling those loans a lot easier.

I believe Countrywide has a rocky road ahead but they will come out on top once the mortgage market opens up again. They are likely to face serious layoffs and a sharp reduction in revenue as they revert to primarily agency qualified paper.

Breakdown target $20.00 hit 8/15/07

Position: 2010 $30 LEAP Call YJD-AF @ $7.00
 

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