Option Investor
Watch List
Printer friendly version

Oil Stock That Is Not Really An Oil Stock

The only company I am adding to the watch list is FMC Technologies. They build undersea pipelines and oil field related equipment and services. Read the description below and I thin you will like them. They did decline with the rest of the sector but that was after a +$12 spike the week before on those good earnings. I profiled a call and a put right from the beginning given the volatility in the market.

Jim Brown

Dropped Entries


New Watch List Entries
FMC Technologies

Current Watch List

FTI - $62.77 - FMC Technologies

FMC Technologies, Inc. provides mission-critical solutions for the energy, food processing and air transportation industries. The Company designs, manufactures and services machinery and systems for its customers through four business segments: Energy Production Systems, Energy Processing Systems, FoodTech and Airport Systems. Energy Production Systems segment designs and manufactures systems, and provides services used by oil and gas companies involved in land and offshore, including deepwater, exploration and production of crude oil and gas. Energy Processing Systems segment designs, manufactures and supplies high-pressure valves and fittings for oilfield service customers. FoodTech segment designs, manufactures and services food processing and handling systems to the food industry. Airport Systems segment is a global supplier of passenger boarding bridges, cargo loaders, and other ground support products and services.

Earnings update on May 9th
The Houston-based machinery manufacturer earned $47 million, or 67 cents a share, compared with breakeven a year ago. Analysts polled by Thomson First Call were estimating earnings of 45 cents a share, in the most recent quarter.
First-quarter revenue rose 27.5% from a year ago to $869.3 million. Analysts were estimating revenue of $819.3 million.
For fiscal 2006, the company increased its earnings guidance to $2.60 to $2.80 a share from $2.20 to $2.40 a share. Analysts surveyed by Thomson First Call are estimating earnings of $2.43 a share.
Its inbound orders in the first quarter increased 74.9% to $1.1 billion from the prior-year quarter. Order backlog climbed to $2.2 billion in the quarter on strong subsea inbound orders.
Energy systems revenue, which contributed 78.2% to total revenue, increased 34.1% to $679.9 million from a year ago. FoodTech business segment revenue rose 10.2% to $123.3 million and airport systems revenue rose 5.4% to $68.2 million.
"We are pleased with the outstanding performance in first quarter. Our results were driven by our subsea systems business as well as our surface systems and fluid control businesses," the company said.

Breakout trigger $63.50
Buy Oct $65 Call FTL-JM currently $5.40
Buy June $60 PUT FTI-RL currently $1.65

Breakdown trigger $60.00
Buy Oct $65 Call FTI-JM currently $5.40
Buy July $55 Put FTI-SL currently $1.00

Leaps Trader Watch List Archives