New Watch List Entries
DRYS - Dryships
WYN - Wyndham Worldwide
Current Watch List
XLE - S&P Energy SPDR
The S&P Energy sector SPDR represents about 13% of the S&P-500. Energy companies in this Index primarily develop and produce crude oil and natural gas, and provide drilling and other energy-related services. Leaders in the group include ExxonMobil Corp., Chevron Corp, and ConocoPhillips.
Breakdown trigger: $44
BUY 2010 $50 LEAP Call WHA-AX
NXY - Nexen
Nexen is a very well run exploration and production company and was recently rumored to be a takeover target of Total SA (TOT). That $19.7 billion bid never occurred and NXY dropped back to support last week. I believe that Total and others are waiting to see if oil prices fall further before making any bids. If oil prices drop they can buy assets cheaper. If oil prices rise their stock is worth more as a currency.
On Tuesday the 9th Nexen announced its budget for 2009 and expects more than $1 billion in free cash flow to add to their current $1.8 billion cash balance and use for share buybacks. They expect to spend $2.6 billion on oil and gas projects in 2009. They have another $2 billion in fully committed, undrawn credit.
This is a small but strong company with great prospects.
Nexen Inc. (Nexen) is an independent, Canadian-based, global energy company. Nexen operates in four segments: oil and gas, Syncrude, energy marketing and chemicals. The Company owns 7.23% of the Syncrude Joint Venture, which develops and produces synthetic crude oil from mining bitumen in the oil sands in northern Alberta. Energy marketing includes its crude oil, natural gas, natural gas liquids, ethanol and power marketing business in North America, Europe and Asia. Chemicals includes operations in North America and Brazil that manufacture, market and distribute sodium chlorate, caustic soda and chlorine through the Canexus Limited Partnership.
Breakdown trigger: $15
BUY 2010 $17.50 LEAP Call KJA-AW
Breakout trigger: (CANCELLED)
DRYS - DryShips
DRYS has been crushed by the 80% drop in cargo rates. This is only temporary. Once the recession runs its course the demand for products will again rocket higher. Currently $11 with a high of $116 back in July. Plenty of room to run.
DryShips Inc. (DryShips) is a holding company that, through its subsidiaries, is engaged in the ocean transportation services of drybulk cargoes worldwide through the ownership and operation of the drybulk carrier vessels. As of December 31, 2007, the Company owned and operated a fleet of 38 vessels and eight new buildings consisting of nine Capesize drybulk carriers (including four new building Capesize drybulk carriers), 33 Panamax drybulk carriers (including two new building Panamax drybulk carriers), two new building Kamsarmax drybulk carriers and two Supramax drybulk carriers. Its fleet carries a variety of drybulk commodities, including major bulks, such as coal, iron ore and grains, and minor bulks, such as bauxite, phosphate, fertilizers and steel products. In July 2008, the Company, through its subsidiary, Primelead Limited, acquired the remaining interest in Ocean Rig ASA. Primelead Limited is owner of 100% of the shares in Ocean Rig ASA.
Breakdown trigger: $8
BUY 2011 $12.50 LEAP Call ZDU-AV
Buy the stock at $8.00
WYN - Wyndham Worldwide
WYN appears to be bucking the trend with a nice rebound off the November lows. They recently said demand for rooms was strong despite the economic mess. They are cutting jobs and upgrading their advertising. They are discounting rooms to introduce people the Wyndham properties. It appears to be working.
Wyndham Worldwide Corporation (Wyndham Worldwide), is a hospitality company. The Company offers individual consumers and business-to-business customers a suite of hospitality products and services across various accommodation alternatives and price ranges through its portfolio of brands. With more than 20 brands, which include Wyndham Hotels and Resorts, Ramada, Days Inn, Super 8, TripRewards, RCI, The Registry Collection, Endless Vacation Rentals, Landal GreenParks, English Country Cottages, Novasol, Wyndham Vacation Resorts and WorldMark by Wyndham. Wyndham Worldwide operates primarily in the lodging, vacation exchange and rentals, and vacation ownership segments of the hospitality industry. In July 2008, the Company completed the acquisition of U.S. Franchise Systems, Inc. and its Microtel Inns & Suites and Hawthorn Suites hotel brands from a subsidiary of Global Hyatt Corporation.
Breakdown trigger: $6
BUY Stock in WYN @ $6.00
OR BUY May $7.50 Call WYN-EU currently $1.65 (no leaps)
Dropped Watch List Entries