Current Watch List
RIMM - Research in Motion
RIMM should capture a lot of cell phone customers frustrated at not being able to buy the iPhone for months after its release due to lack of supply. Other customers may decide the iPhone is not focused enough towards business customers and opt for the Blackberry instead.
Research In Motion Limited (RIM) is a designer, manufacturer and marketer of wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services that support wireless network standards, the Company provides platforms and solutions for seamless access to time-sensitive information, including e-mail, phone, short message service (SMS), Internet and intranet-based applications. RIM technology also enables an array of third-party developers and manufacturers to enhance their products and services with wireless connectivity to data. RIM's primary revenue stream is generated by the BlackBerry wireless solution, comprised of wireless devices, software and service. Other revenue includes accessories, non-warranty repairs, and non-recurring engineering development contracts (NRE).
Breakdown trigger: $168.00
Buy 2009 $180 LEAP Call VHO-AP
Profits will be capped at $30-$40 but cost is cheaper.
NOV - National Oilwell
National has been on a very strong ramp higher for five months. I have wanted to buy it on a pullback but missed the April dip. I want to enter NOV on a dip back to its 30 day average currently at $97. I am going to make the trigger $100 and it could be a long time before we are hit. I want to be patient here and take the entry only if the market gives it to us.
National Oilwell Varco, Inc. (NOV) is a worldwide provider of equipment and components used in oil and gas drilling and production operations, oilfield services, and supply chain integration services to the upstream oil and gas industry. The Company operates in three segments: Rig Technology, Petroleum Services & Supplies, and Distribution Services. The Rig Technology segment designs, manufactures, sells and services complete systems for the drilling, completion and servicing of oil and gas wells. The Petroleum Services & Supplies segment provides a variety of consumable goods and services used to drill, complete, remediate and workover oil and gas wells, service pipelines, flowlines and other oilfield tubular goods. The Distribution Services segment provides maintenance, repair and operating supplies, and spare parts. In March 2006, NOV acquired Soil Recovery A/S. In November 2006, it acquired Rolligon Ltd. In December 2006, it acquired 87% of NQL Energy Services Inc.
Breakdown trigger: $100 (no leaps)
Buy Feb 2008 $110 Call NOV-BA
GSF - GlobalSantaFe
GSF has strong support at the 30-day average and I want to target that on the next dip. GSF is becoming more of an acquisition target as each day passes. It is less well known than some of the bigger names like DO and RIG but is very well regarded. We want to buy on the next dip as opposed to chase the price.
GlobalSantaFe Corporation is an offshore oil and gas drilling contractor, owning or operating a fleet of 59 marine drilling rigs. During the year ended December 31, 206, it commenced construction of an additional semisubmersible. The Company also has a jackup rig, the GSF High Island III. GlobalSantaFe Corporation provides offshore oil and gas contract drilling services to the oil and gas industry worldwide on a daily rate (dayrate) basis. The Company also provides oil and gas drilling management services on either a dayrate or completed-project, fixed-price (turnkey) basis, as well as drilling engineering and drilling project management services, and it participate in oil and gas exploration and production activities.
Breakdown target: $70
Buy 2010 $80 LEAP Call WEJ-AP
CNQ - Canadian National Resources
CNQ is already well off its highs and very close to support at $65. This may be a chance to get a choice entry at a reasonable price. It has no risk to offshore or overseas events.
Canadian Natural Resources Limited (CNRL) is an independent crude oil and natural gas exploration, development and production company head-quartered in Calgary, Alberta, Canada. The Company's operations are focused in North America, largely in Western Canada, the United Kingdom portion of the North Sea and Offshore West Africa. In November 2006, the Company completed the acquisition of Anadarko Canada Corporation from Anadarko Petroleum Corporation. The Company's crude oil and natural gas activities are conducted in three geographic segments: North America, North Sea and Offshore West Africa. These activities relate to the exploration, development, production and marketing of crude oil, natural gas liquids and natural gas. The Company's Horizon Project has been classified as a separate segment. Midstream activities include the Company's pipeline operations and an electricity co-generation system.
Breakdown target: $65
Buy Jan 2009 $70 LEAP Call OKR-AN
UPL - Ultra Petroleum
This is an unbelievable opportunity in progress. For some reason UPL has fallen out of favor even though production is rising and they are the lowest cost producer in North America. Cash flow in Q1 increased +15% on a +42% increase in production to record levels. They closed 2007 with more than 10 TCF of gas reserves in Wyoming and Utah. They have a 17 year drilling program on those assets alone. They raised guidance for 2007 to 114 BCFE for a +24% increase over 2006. Estimates for 2008 are 135 BCFE and 160 BCFE for 2009. They added $250 million to a $1 billion share repurchase agreement on April 30th. This company is printing money but suddenly the stock has fallen out of favor with investors. I would love to be a buyer at $50. Falling gas prices may give us a chance.
Ultra Petroleum Corp. (Ultra) is an oil and gas company engaged in the development, production, operation, exploration and acquisition of oil and gas properties. The Company's operations are primarily in the Green River Basin of southwest Wyoming and Bohai Bay, offshore China. As of December 31, 2006, Ultra owned interests in approximately 147,917 gross (79,566 net) acres in Wyoming covering approximately 230 square miles. The Company owns working interests in approximately 464 gross producing wells in this area and is an operator of 50% of the 464 gross wells. During the year ended December 31, 2006, domestic production was approximately 89.5% of the Company's total oil and natural gas production on a thousand cubic feet of natural gas equivalent (Mcfe) basis and 99% of the Company's estimated net proved reserves were domestic on a Mcfe basis.
Breakdown target: $50
Buy Jan 2009 $60 LEAP Call OZH-AL