Continue reading Closing Bell: Gold Hits Record Close (MCD, DO, DG, GS, JPM)

Closing Bell: Gold Hits Record Close (MCD, DO, DG, GS, JPM) originally appeared on BloggingStocks on Tue, 08 Jun 2010 16:00:00 EST. Please see our terms for use of feeds.

"We sense a turn for the better coming in the oil sector," says Peter Way who tracks 'big money' investors for his Block Trader Oil & Gas Report. Here's his look at the "big block" traders.

"When we use the hedging analysis employed in our stock price forecasts, there are significant differences between some adjacent futures expirations. Here's the current picture:

"Front month (November) hedging suggests likely near-term higher prices. But the December contracts are likely to continue the past 3-month price decline - briefly.

"After that we could see crude rise over a few months into the $115-125 area or even higher, providing a bullish backdrop for most energy stocks. We sense a turn for the better coming in this sector.

"Several issues are selling at attractive prices now. Among major integrated producers, the standout prospect among the big oils is Petrochina (NYSE: PTR).

Continue reading Big block traders bet on oil sector favorites

Big block traders bet on oil sector favorites originally appeared on BloggingStocks on Mon, 27 Oct 2008 13:11:00 EST. Please see our terms for use of feeds.

Rowan Companies Inc. (NYSE: RDC), a provider of international and domestic offshore contract drilling services, is recently down .33 to $37.42. RDC has been frequently mentioned as unconfirmed buyout candidate over the last 18-months. RDC has a market cap of $4.1 billion with long-term debt of $450 million. RDC has a P.E. of 12. RDC is expected to report EPS on 11/1. RDC call option volume of 4,251 contracts compares to put volume of 62 contracts. RDC October option implied volatility of 38 is above its 26-week average of 33 according to Track Data, suggesting larger risk.

Diamond Offshore Drilling (NYSE:DO) implied volatility Flat as oil trades at $83. DO, a drilling service provider to the energy industry, is recently trading down .04 to $114.01. DO has a market cap of $15.9 billion with long-term debt of $502 million. DO has a P.E. of 18. DO is expected to report EPS in late October. DO has been frequently mentioned as a potential acquirer of drilling service assets. DO October option implied volatility of 32 is near its 26-week average according to Track Data, suggesting non-directional price risk.

Option update provided by Stock Specialist Paul Foster of theflyonthewall.com.

Option update: Rowan (RDC) volatility elevated on unconfirmed buyout chatter originally appeared on BloggingStocks on Fri, 28 Sep 2007 16:13:00 EST. Please see our terms for use of feeds.

Diamond Offshore Drilling (NYSE: DO) volatility slightly higher as DO at record high. DO, a drilling service provider to the energy industry, closed at $113.04. RIG and GSF, drilling service providers, announced a merger of equals on 7/23. DO August option implied volatility of 36 is above its 26-week average of 33 according to Track Data, suggesting slightly larger price risk.

Ensco International (NYSE: ESV) volatility elevated as ESV at record high. ESV, an offshore contract drilling company, closed at $65.90. RIG and GSF, drilling service providers, announced a merger of equals on 7/23. ESV has a market cap of $9.8 billion with long-term debt of $308 million. ESV had March 2007 quarterly net income of $232 million on total revenue of $514 million. LYON has a $59 price target on ESV. ESV August option implied volatility of 40 is above its 26-week average of 33 according to Track Data, indicating larger price fluctuations.

Atwood Oceanics (NYSE: ATW) August implied volatility elevated as ATW at record high. ATW is engaged in the business of international offshore drilling of exploratory and developmental oil and gas wells and related support management and consulting services. ATW closed at $74.36. ATW will report EPS on August 7th. RIG and GSF, drilling service providers, announced a merger of equals on 7/23. ATW August option implied volatility of 39 is above its 26-week average of 33 according to Track Data, suggesting larger risk.

Rowan (NYSE: RDC) August volatility elevated into EPS. RDC, a provider of international and domestic offshore contract drilling services, will announce EPS on August 2nd. Morgan Keegan says: "We are lowering our estimates on RDC as we build in lower day rate assumptions and a delayed recovery for US Gulf commodity jackups." RIG and GSF, drilling service providers, announced a merger of equals on 7/23. RDC August option implied volatility of 46 is above its 26-week average of 32 according to Track Data, suggesting larger risk.

Daily Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Option update 7-24-07: Oil & gas drilling service volatilities elevated originally appeared on BloggingStocks on Tue, 24 Jul 2007 10:35:00 EST. Please see our terms for use of feeds.

Daily options report: Novellus Systems elevated, Diamond Offshore Drilling volatility increased originally appeared on BloggingStocks on Fri, 01 Dec 2006 17:35:00 EST. Please see our terms for use of feeds.