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New Plays
Long Plays
Short Plays
BAS None
HOS  

Play Editor's Note: Oil and energy stocks are on the move again and almost all the stocks I reviewed in this sector look poised to move higher. The threat of hurricane Gustav hitting the Gulf of Mexico could push crude oil higher. Plus, we have the ongoing conflict with Russia and Georgia and the rising tensions between the U.S./Nato and Russia over this conflict. Oil tends to move up into the middle of September and then reverses lower once the worst of hurricane season has passed and the summer driving season ends.

FYI: Keep an eye on NBR. A dip back toward $36.00 or $35.50 could be a new bullish entry point.


New Long Plays

Basic Energy Services - BAS - cls: 28.34 chg: +1.13 stop: 26.45

Company Description:
Basic Energy Services provides well site services essential to maintaining production from the oil and gas wells within its operating area. The company employs more than 4,700 employees in more than 100 service points throughout the major oil and gas producing regions in Texas, Louisiana, Oklahoma, New Mexico, Arkansas, Kansas and the Rocky Mountain States. (source: company press release or website)

Why We Like It:
Oil stocks are turning positive again. BAS displayed some relative strength with a 4% gain and a bullish breakout over $28.00 and its 50-dma. We are suggesting readers go ahead and jump in here on the breakout. If you have patience then wait for a dip into the $27.50-27.00 zone. Oil might dip on the inventory report tomorrow but we expect any dip to be temporary with Gustav barreling down toward the Gulf of Mexico. Our target on BAS is $31.50. FYI: More conservative traders may want to use a stop loss closer to $27.00. The most recent data listed short interest at 7% of the small 21.7 million-share float.

Picked on August 26 at $28.34
Change since picked: + 0.00
Earnings Date 11/06/08 (unconfirmed)
Average Daily Volume: 437 thousand

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Hornbeck Offshore - HOS - cls: 43.10 change: +1.40 stop: 40.95

Company Description:
Hornbeck Offshore Services, Inc. is a leading provider of technologically advanced, new generation offshore supply vessels primarily in the U.S. Gulf of Mexico and other select U.S. and international markets, and is a leading transporter of petroleum products through its fleet of ocean-going tugs and tank barges primarily in the northeastern U.S., the U.S. Gulf of Mexico, the Great Lakes and in Puerto Rico. Hornbeck Offshore currently owns a fleet of over 80 vessels primarily serving the energy industry. (source: company press release or website)

Why We Like It:
The onset of hurricane season in the Gulf of Mexico should be big business for the likes of HOS. The stock appears to have found a bottom and we want to buy today's bounce. If shares do dip we would jump in on a dip near $42.00 as well. We'll try and play with a stop loss under Monday's low. More aggressive traders might want a stop under $40.00. There is plenty of overhead resistance so this could be a tough ride higher. Our target is the $48.00 mark.

Picked on August 26 at $43.10
Change since picked: + 0.00
Earnings Date 10/30/08 (unconfirmed)
Average Daily Volume: 815 thousand
 

New Short Plays

None today.
 

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