Current Watch List
MDR - McDermott Intl
McDermott International, Inc. (MII) is the parent company of the McDermott group of companies, which includes J. Ray McDermott, S.A. and its consolidated subsidiaries; McDermott Incorporated (MI) and its consolidated subsidiaries; Babcock & Wilcox Investment Company (BWICO), a subsidiary of MI; BWX Technologies, Inc., a subsidiary of BWICO, and its consolidated subsidiaries, and The Babcock & Wilcox Company, a subsidiary of BWICO, and its consolidated subsidiaries. Through these subsidiaries, MII operates as a global energy services company with three business segments.
Breakdown target $46 *** Changed ***
Buy 2009 $50 LEAP OYZ-AJ
LNG - Cheniere Energy
Cheniere Energy, Inc. is engaged primarily in the business of developing and constructing, and then owning and operating, a network of three onshore liquefied natural gas (LNG) receiving terminals, and related natural gas pipelines, along the Gulf Coast of the United States. The Company's immediate focus is on its LNG receiving terminals being developed in western Cameron Parish, Louisiana on the Sabine Pass Channel and near Corpus Christi, Texas. Cheniere Energy is also engaged, to a limited extent, in oil and natural gas exploration and development activities in the Gulf of Mexico. Exploration efforts are focused on the shallow waters of the Gulf of Mexico offshore of Louisiana and Texas and consist primarily of active interpretation of seismic data and generation of prospects, through participation in the drilling of wells, and through farm-out arrangements and back-in interests whereby the capital costs of such activities are borne primarily by industry partners.
LNG has taken off like a scared rabbit after getting financing approval for the next step in its LNG terminal construction phase. After six months of declines to $25 LNG rocketed back to $30 last week and shows no indications of slowing down. The game has changed for LNG and for Cheniere. All the news is suddenly positive and the shorts are getting pummeled. I would like to buy LNG on a pullback to $28 but that possibility is doubtful. I will take the entry at $31 and be happy.
Breakdown target $28
Buy 2009 $30 LEAP ONP-AF
Currently that LEAP is quoted at $8.20 with the
$35 LEAP at $6.20. I would
gladly pay the extra $2 for another $5 in the money at expiration plus an even
money strike in case of a future stock split.