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NOV $72.50 +2.65 - National Oilwell Varco

NOV reported earnings on Wednesday that doubled to $1.02 per share. Analysts were expecting 94 cents. The backlog of orders rose to $8 billion from $7.2 billion in the prior quarter. NOV shares sagged slightly as they confirmed that North American activity was continuing to drift down slightly as spending on new rigs slowed. However they were very upbeat about the Gulf and deep water saying activity there should pickup significantly over the next 12-18 months. Sales were up +45% with their rig technology segment up +72%. Operating profits jumped +91%. I believe the weakness in the stock due to slowing North American activity is incorrect. NOV gets 89% of its revenue from international firms and with the pickup in activity in the Gulf I think NOV will return to its highs before too long.

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

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

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MDR - $60.34 -.53 McDermott International

No further news on MDR but the stop recovered from its $51 low on Monday to within 50 cents of its $62 high on Friday. An $11 rebound is definitely nothing to complain about. That shows buyers were eager to buy this dip.

Earnings schedule: Nov 8th

Breakout trigger: $53, hit 9/20

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

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UPL $67.39 +0.90 - Ultra Petroleum *** Stop Loss $52 ***

Ultra dipped on Monday but recovered most of the drop by Friday's close. They completed their sale of the China leases and announced their earnings call for next Wednesday.

Earnings scheduled for Oct-31st.

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 $38.81 +1.32 Chesapeake Energy

CHK shook off the early week weakness in gas prices and rebounded to close at another new high on Friday. No complaints and no news.

Earnings schedule: Nov 7th

Link to Enercom presentation

Position: 2010 $35 LEAP Call WZY-AG @ $6.60
10/28 Price update: Expired Oct Put +90 cents, $7.50

Insurance put:
Oct $30 Put CHK-VF @ 90 cents. Expired

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HP $30.65 -2.33 Helmerich & Payne *** Stop Loss $27.50 ***

No news and a continued drop on the weak North American rig market. We still have the insurance put so we are covered against any further declines. No earnings announcement yet.

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 $25.04 -.11 Hercules Offshore ** Stop Loss $24.00 **

HERO held its ground all week ahead of its earnings scheduled for next Tuesday. No news. Maintain the stop at $24.

Earnings are scheduled for Oct-30th.

Enercom presentation

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

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GLBL $23.61 -1.50 Global Industries ** Closed **

The rate of decline on no news has soured me on this position. We are only down a buck so I am exiting before it gets worse.

Earnings schedule: Nov-1st

Enercom presentation

Position: 2008 March $25 Call GQO-CE @ $3.30, exit 2.15, -1.15

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BHP - $86.16 +3.58 BHP Billiton ** Stop Loss $60.00 **

Another new closing high after a very volatile week. Definitely no complaints! Surging oil, gold and copper prices powered BHP but it was a rocky ride! No earnings date yet.

Breakdown target: $55 hit 8/15/07

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

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CCJ - $50.57 +5.38 Cameco ** No Stop **

All the news about the shortage of uranium has built a nuclear reaction under CCJ with a $5 gain. The 439 reactors currently operating around the world will soon be joined by 31 under construction, 86 planned and 223 proposed. The amount of uranium currently consumed each year is 80,000 tons. Mine production is 42,000 tons. Obsolete nuclear weapons being decommissioned makes up the difference but those will be used up in the next couple of years. Uranium is going higher and CCJ is the largest producer in the world. 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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