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Dropped Entries
FLR Fluor

New Watch List Entries
Pride International
VLO Valero

Current Watch List


Based on the recent announcements by BP it may be time to take another run at this stock. When Thunderhorse comes online in Q3 it should get a lot of press due to the high volume of oil they expect to produce. Maybe BP's troubles are over.

Company Info:

BP p.l.c. (BP) is a holding company. The Company three business segments: Exploration and Production, Refining and Marketing and Gas, Power and Renewables. Exploration and Productions activities include oil and natural gas exploration, development and production (upstream activities), together with related pipeline, transportation and processing activities (midstream activities). The activities of Refining and Marketing include the supply and trading, refining, marketing and transportation of crude oil, petroleum and chemicals products. Gas, Power and Renewables activities included marketing and trading of gas and power, marketing of liquefied natural gas (LNG), natural gas liquids (NGLs) and low-carbon power generation through its Alternative Energy business. During the year ended December 31, 2007, BP acquired Chevrons Netherlands manufacturing company, Texaco Raffiniderij Pernis B.V. In April 2008, BP registered in Russia its subsidiary BP Exploration Services.

Breakdown trigger: $68. *** I am holding this level ***

Buy 2010 $70 LEAP Call WAO-AN


COP - ConocoPhillips

COP is still running and I am not going to chase them. I am going to raise the trigger slightly but just to support.

Company Info:

ConocoPhillips is an international, integrated energy company. It has six operating segments. Exploration and Production segment explores for, produces and markets crude oil, natural gas and natural gas liquids. Midstream segment gathers, processes and markets natural gas, and fractionates and markets natural gas liquids, primarily in the United States and Trinidad. Refining and Marketing segment purchases, refines, markets and transports crude oil and petroleum products. LUKOIL Investment segment consists of its equity investment in the ordinary shares of OAO LUKOIL. The Chemicals segment manufactures and markets petrochemicals and plastics on a worldwide basis. Emerging Businesses segment includes the development of new technologies and businesses outside the Companys normal scope of operations. In October 2007, American Electric Power Company, Inc. sold its 50% interest in the Sweeny Cogeneration plant in Texas to ConocoPhillips.

Breakdown trigger: $84 *** No change ***

BUY 2010 $90 LEAP Call YRO-AR


PDE - Pride International

Pride is being rumored as a takeover target as one of the few remaining ocean drillers still independent. With a market cap of only $7.7 billion they would be only a snack for one of the bigger firms interested in expanding some more.

Company Info:

Headquartered in Houston, Texas, Pride International, Inc. is one of the world's largest drilling contractors. Pride provides contract drilling and related services to oil and gas companies worldwide.
With over 7,000 employees, Pride offers a multinational workforce with offices in the United States, Africa, Asia, Europe and South America.
We have positioned our fleet in some of the world's largest and most active exploration and production areas, with a market presence in West Africa (Angola), Latin America (Brazil), the Gulf of Mexico, the Mediterranean and Middle East. Today, we operate a total of 64 rigs.

Breakdown trigger: $44

Buy Jan 2009 $50 Call PDE-AJ

I went with a Jan call instead of a LEAP because an acquisition would limit LEAP appreciation. I wanted to be close to the current price with a cheap option.


VLO - Valero

Is it time to venture back into the refiners? While I am not convinced VLO has bounced off $45 twice in he last two months. Eventually the crack spread has to widen or gasoline prices will go higher from too little supply. Refiners are not going to refine it at a loss. Valero has a large percentage of their capacity in sour crude capability. They should be able to undercut anybody that depends on sweet crude. I am willing to take a flyer here if resistance at $50 can be broken.

Company Info:

Valero Energy Corporation is a Fortune 500 company based in San Antonio, Texas, and incorporated in Delaware. Valero's common stock is listed for trading on the New York Stock Exchange under the symbol "VLO." The company has approximately 22,000 employees and assets valued at $38 billion.

The largest refiner in North America, Valero has an extensive refining system with a throughput capacity of approximately 3.1 million barrels per day. The company's geographically diverse refining network stretches from Canada to the U.S. Gulf Coast and West Coast to the Caribbean.

Valero has a mid-stream logistics system that supports Valero's refining and marketing operations.

A marketing leader, Valero has approximately 5,800 retail and wholesale stores in the United States, Canada and the Caribbean under various brand names including Valero, Diamond Shamrock, Shamrock, Ultramar, and Beacon. The company markets on a retail and wholesale basis through a bulk and rack marketing network in 44 U.S. states, Canada, Latin America and the Caribbean.

Breakout trigger: $51
Buy 2010 $60 LEAP YPY-AL
Breakdown trigger: $45
Buy 2010 $50 LEAP YPY-AJ

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