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NOV $69.81 -8.56 - National Oilwell Varco

That was REALLY PAINFUL! The SLB news knocked NOV back into September with a monster -7 drop on Friday. I have no stop on NOV and I would consider $70 a good entry point for anyone that missed the last entry.


Breakout Trigger: $80, hit 10/11/07

Position: 2008 May $90 Call NON-ER @ $7.20

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MDR - $54.27 -6.60 McDermott International

Almost all of the loss for the week came with the -$5 drop on Friday as a result of the SLB news. No specific news for MDR other than the announcement of an earnings date. Earnings scheduled for Nov-8th.

Earnings schedule: Nov 8th

Breakout trigger: $53, hit 9/20

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

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UPL $68.42 -1.93 - Ultra Petroleum *** Stop Loss $52 ***

Excellent strength by UPL in the face of a sector decline. UPL only lost -1.18 on Friday. No news and no earnings date.

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 $37.60 +0.11 Chesapeake Energy

CHK actually posted a gain for the week, only a few cents but still a gain. A loss of 79 cents on Friday was a non-event. I drove past DFW airport last week and marveled at the CHK rigs drilling in sight of the runways.

Earnings schedule: Nov 7th

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 $31.38 -1.60 Helmerich & Payne *** Stop Loss $27.50 ***

No news but HP did drop -1.50 on the SLB earnings. We still have the insurance put so we are covered against any further declines.

Enercom presentation here

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

Insurance put:
Position: Nov $30 HP-WF. @ .50, Stop $28.50

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HERO $25.16 -2.54 Hercules Offshore ** Stop Loss $24.00 **

All week was ugly for HERO. The service company gave up nearly all of its prior gains and retreated to support at $25. Earnings are scheduled for Oct-30th. Maintain the stop at $24.

Enercom presentation

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

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GLBL $25.11 -0.96 Global Industries ** Stop Loss $18.50 **

GLBL continued its decline from the prior week but at a snails pace. We are still well above the stop. No change in play.

Earnings schedule: Nov-1st

Enercom presentation

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

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BHP - $82.64 -2.11 BHP Billiton ** Stop Loss $60.00 **

Dip, what dip? BHP barely reacted to the sector news and gave back only $2 of the prior week's gains.

Breakdown target: $55 hit 8/15/07

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

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CCJ - $45.19 +1.34 Cameco ** Stop Loss $30 **

Outstanding! CCJ was the biggest gainer for the week. I have a lot of news about uranium supplies and nuke plans that I will share in the coming weeks. Bottom line, CCJ is a BUY! No news and no change in play.

Earnings schedule: Oct-31st

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 $79.09 -4.73 Russell 2000 iShares ** Stopped $79.50 **

The Russell imploded on Friday after a decline with the markets all week. Our highly profitable position turned into an exit with no gain when our stop was hit on Friday.

Position: Jan $80 Call IOW-AB @ $4.25, exit $4.25 no gain

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BSC $116.41 -6.75 Bear Stearns *** Closed $116 ***

I changed my mind on BSC this week. The bounce faded despite discussions of possible buyers of a BSC stake. With Friday's numerous comments about a tough recession ahead I am going to bail while we are still positive.

Breakdown target $100 hit 8/06/07

Position: 2010 $120 LEAP Call YBO-AD @ $25.60, exit $26.10

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CFC - $15.23 -2.49 Countrywide Financial ** Stopped $17 **

News of the CEO's continued stock sales and SEC investigations into those sales pushed us back to the stop and killed the play after a very volatile couple of months.

Breakdown target $20.00 hit 8/15/07

Position: 2010 $30 LEAP Call YJD-AF @ $7.00, exit $2.90, -4.10
 

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