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Yellow Metal Redux

I am switching horses in mid stream. I read some commentary last week about the various gold companies and ways to invest in that commodity. I am convinced that Goldcorp (GG) is a better play than Newmont. I am swapping out the watch list entry to reflect this change. After the +$34 gain in gold this week from Monday's lows I am convinced we are going to see some huge numbers ahead.

I am also adding Tenaris as a new play based on their 5:1 split last week. This was completely invisible until it happened. The company was not big on press releases into the American market.

Tenaris has been rocking off the charts for months with a stop price at $230 the day of the split. The 5:1 split knocked the price back down to $43 but Friday's action already added +$3 to the price. Their oil and gas pipe business is exploding and finally the options are cheap enough to buy.

Dropped Entries
NEM Newmont Mining

New Watch List Entries
TS $45.89 Tenaris

Current Watch List

GG $35.10 - Goldcorp

Goldcorp Inc. (Goldcorp) is a North American-based gold producer engaged in exploration, extraction and processing of gold. The Company's primary asset is its Red Lake Mine, a gold mine in Canada. It's other operations include the Bajo de la Alumbrera gold-copper mine (the Alumbrera Mine) in Argentina; a 100% interest in each of the San Dimas gold-silver mine (the San Dimas Mine); the San Martin gold-silver mine (the San Martin Mine); the Nukay gold-silver mine (the Nukay Mine) in Mexico, and a 100% interest in the Peak gold mine (the Peak Mine) in Australia. Goldcorp also has 100% interests in the Los Filos gold development stage project (the Los Filos Project) in Mexico and the Amapari gold project (the Amapari Project) in Brazil. Goldcorp also owns approximately 59% of Silver Wheaton Corp. (Silver Wheaton), a mining company with 100% of its revenue from silver production.

Breakdown trigger $33.00
Buy 2008 $35 LEAP Call WILGX-AG

Breakout trigger $36.00
Buy 2008 $35 LEAP Call WILGX-AG (highest LEAP available)


TS $45.89 - Tenaris

Tenaris S.A. is a global manufacturer of seamless steel pipes for the oil and gas industry and a global supplier of seamless steel pipes for process and power plants and for industrial and automotive applications. It is also a regional supplier of welded steel pipes for oil and gas pipelines in South America. Tenaris focus on providing end-user customers a service that integrates manufacturing, procurement, distribution and on-time delivery of products throughout the world. Incorporated in Luxembourg, the Company has manufacturing facilities in Argentina, Brazil, Canada, Italy, Japan, Mexico, Romania and Venezuela. It also has a proprietary global service and distribution network in over 20 countries. Tenaris' customers include many of the world's major oil and gas companies, as well as a large number of engineering and industrial companies.

I am hoping for some post split depression as an opportunity to get in a little cheaper. If the recent trend continues that will likely not occur.

Breakdown trigger $43.50
Buy Dec $50 Call TSW-LJ

Breakout trigger $47.00
Buy Dec $52 Call TSW-LX

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