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MDR - $54.08 -0.66 McDermott International

No news on McDermott and it continued to hold the high ground. Be sure to enter the insurance put if our trigger is hit.

Insurance put: Buy the NOV $50 Put MDR-WJ on MDR at $52.50

Breakout trigger: $53, hit 9/20

Position: 2009 $60 LEAP Call OYZ-AL @ $9.00

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UPL $62.04 +4.17 - Ultra Petroleum *** Stop Loss $52 ***

Ultra rocketed higher on news they sold their oil properties in Bohai Bay China for $223 million. The sale of this non-core asset provides additional cash for operations and more importantly allows Ultra to concentrate full time on developing the Pinedale gas field. That is the second largest gas field in the US and Ultra is the major landowner. Expect some profit taking when the news wears off.

Ultra Petroleum presentation

Breakdown target: $52.50 Hit 8/30

Position: Jan 2009 $60 LEAP Call OZH-AL @ $8.00

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CHK $35.26 -0.30 Chesapeake Energy

CHK was in the news again for insider trading. Good news, they were buying shares at market rates! CEO Aubrey McClendon bought another 25,000 shares at $35 each. Go Aubrey!

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 $32.83 -1.71 Helmerich & Payne *** Stop Loss $27.50 ***

HP pulled back a little on no news. Services stocks saw some selling as if investors were anticipating a correction in oil prices. No change in play

Enercom presentation here

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

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HERO $26.11 -1.77 Hercules Offshore ** Stop Loss $24.00 **

No news and more weakness but it was sector related not specific to HERO. Maintain the stop at $24.

Enercom presentation

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

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GLBL $25.76 +0.20 Global Industries ** Stop Loss $18.50 **

No news and Global continues to creep higher. It would be really nice for a trigger event to appear and push us over that $26.50 resistance. No change in play.

Enercom presentation

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

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BHP - $79.60 +6.07 BHP Billiton ** Stop Loss $60.00 **

Another week, another $6 gain! The new CEO for BHP gave a rousing forecast for continued growth in mining demand fed by China, India and the rest of the emerging economies. He said demand was solid for as far as he could see into the future. He said shortages in supply would keep prices high for years to come.

Breakdown target: $55 hit 8/15/07

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

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CCJ - $46.24 +2.35 Cameco ** Stop Loss $30 **

Nice gain on no specific news. The first application for a nuke plant in the US in 30 years is keeping buyers interested in CCJ. Reportedly many more applications will be filed over the next 18 months. No news and no change in play.

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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IWM $80.04 -.92 Russell 2000 iShares ** Stop Loss $78.50 **

The slide in the Russell and the potential slide in the broader market next week prompted me to raise the stop on this position. The post Fed takeoff ran out of fuel and the quarter ended with a fizzle rather than a surge. I would close this today but there is that slim chance that the market could continue higher on new buying. Maintain the new stop.

Position: Jan $80 Call IOW-AB @ $4.25

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RIMM - $98.55 +5.37 - Research in Motion

RIMM tacked on another $5 on no specific news. The earnings date changed to Oct 4th so next Thursday should see another sprint high if RIMM surprises as expected. We are pretty close to full value on this play so I expect to exit soon. We need some of the excess premium to bleed from the $76 short calls as they move farther into the money and we will exit.

For initial commentary see the July 1st newsletter.

Earnings schedule: Oct 4th

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 $122.81 +5.49 - Bear Stearns *** Stop Loss $97 ***

BSC rocketed higher on a report in the NYT that a major investor like Warren Buffet was considering a 20% stake in BSC. The report turned into a rumor then into thin air leaving the various reporters holding the bag. CNBC ate crow and the stock vacillated wildly. In the end BSC closed on an uptrend for the week and we are not complaining. If one of our readers can get another rumor started next week we might actually get over $135 and a new 2-month high.

Breakdown target $100 hit 8/06/07

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

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CFC - $19.01 -.60 Countrywide Financial ** Stop Loss $15 **

We need somebody to start a rumor that Warren Buffet is thinking about buying CFC to get this stock out of its doldrums. The subprime mess is winding down at least in its importance to the financial health of the companies concerned. We may have to wait for the CEO to appear on CNBC again and claim they are gaining market share and business is booming before the new uptrend will begin. I considered an exit but we have a couple years to go and it could be back at $40 once the rebound begins. We have to be patient as the chops around here at the BAC convertible price.

Breakdown target $20.00 hit 8/15/07

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

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