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McDermott Intl

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BRS - Bristow Group

Bristow came within 4 cents of hitting our breakout trigger on Monday before declining to within 41 cents of hitting our breakdown trigger. Relatively speaking it held its gains from the prior week very well.

Bristow recently reported earnings that rose +36% on increased flight hours and better pricing. They provide flight services to offshore platforms around the world. Since offshore drilling is rapidly expanding and the distance from shore is increasing I expect Bristow to continue to grow earnings.

Last week they announced a private placement of $250 million in debt. They plan to use the proceeds to fund the purchase of additional aircraft to handle the increased workload.

Company info:

Bristow Group Inc., formerly Offshore Logistics, Inc., is a provider of helicopter transportation services to the worldwide offshore oil and gas industry with operations in the United States Gulf of Mexico and the North Sea. The Company also has operations, both directly and indirectly, in offshore oil and gas producing regions of the world, including Australia, Brazil, China, Mexico, Nigeria, Russia and Trinidad. The Company also provides production management services for oil and gas production facilities in the United States Gulf of Mexico. As of March 31, 2006, the Company operated 331 aircraft, and its unconsolidated affiliates operated an additional 146 aircraft worldwide. The Company operates business in two segments: Helicopter Services and Production Management Services. Bristow Group Inc. conducted Helicopter Services through six business units: North American, South and Central American, Europe, West Africa, Southeast Asia, and Other International Operations.

Bristow has no LEAPS

Breakout trigger: $50.50
Buy Dec $50 Calls BRS-LJ

Breakdown trigger: $48.00
Buy Dec $50 Calls BRS-LJ


MDR - McDermott Intl

McDermott declined to support at $75 where it held on Friday. I considered just going long on MDR at this level but I am concerned we could see another dip. MDR has a lot of unrealized profit in the May bounce. I would like to see some consolidation before jumping in.

Company info:

McDermott International, Inc. (MII) is an engineering and construction company with specialty manufacturing and service capabilities. MII is the parent company of the McDermott group of companies, which includes J. Ray McDermott, S.A. (JRMSA) and its consolidated subsidiaries; McDermott Holdings, Inc. (MHI) and its consolidated subsidiaries; McDermott Incorporated (MI), a subsidiary of MHI, and its consolidated subsidiaries; The Babcock & Wilcox Companies (B&WC), a subsidiary of MI; BWX Technologies, Inc. (BWXT), a subsidiary of B&WC, and its consolidated subsidiaries, and The Babcock & Wilcox Company (B&W), a subsidiary of B&WC, and its consolidated subsidiaries. MII is a worldwide energy services company operating in three business segments: Offshore Oil and Gas Construction, Government Operations and Power Generation Systems.

Breakdown trigger: $73.00
Breakout trigger: $78.00

Buy 2009 $80 LEAP Call OYZ-AP

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