Analyst Upgrades

• Citigroup (C) to outperform from market perform at Bernstein.
• Cubist Pharma (CBST) to outperform from neutral at RW Baird.
• Pentair (PNR) to buy from hold at Citigroup.
• Heritage Financial (HFWA) to outperform from market perform at Keefe Bruyette.
• SL Green Realty (SLG) and Digital Realty (DLR) to market perform from underperform at FBR Capital.
• MGM Resorts (MGM) to neutral from Sell at Janney Capital.
• Ciena (CIEN) to buy from neutral and Olin (OLN) to buy from underperform at BofA/Merrill.
• Mellanox (MLNX) to overweight from equal weight at Barclays.
• ConocoPhillips (COP) and Canadian Natural (CNQ) to overweight from neutral at JPMorgan.
• IDEX (IEX) to outperform from perform at Oppenheimer.
• Taiwan Semiconductor (TSM) to buy from hold at Deutsche Bank.
• Ctrip.com (CTRP) to positive from neutral at Susquehanna.
• Linear Technology (LLTC) and Analog Devices (ADI) to hold from sell at Auriga.
• Quicksilver (KWK) to outperform from market perform at BMO Capital.

Oil/natural gas giant Occidental Petroleum (OXY) first discussed here on April 27, 2009, at a price of $54.81, continues to shine, galloping above major, psychological resistance at $100 to trade near $106.

Therefore, if you haven't already, now would be a good time to take some profits with OXY if you're in near $55.

However, those investors who can tolerate the risk can maintain their full position with OXY, as there's more upside ahead.

As outlined, August proved to be a good time to add to shares of oil/natural gas giant Occidental Petroleum (OXY), first discussed here on April 27, 2009 at a price of $54.81, as the stock has soared to $90 from about $76 in the summer. And I still like the shares at this stage. Here's why:

Look for Occidental to post a double-digit volume increase in 2011, after a probable 15%-20% volume increase in 2010.

Occidental, which focuses on oil oil/gas exploration/production and has no refineries, is well-positioned to capitalize on oil's likely, continued historically high (above $50 per barrel) price in 2011. Several global exploration/production projects (Middle East, Latin America) look promising.

Occidental Petroleum (OXY) closed up $3.19 to $75.42. WTI Crude futures closed up 2.73% to $75.36 according to Bloomberg. September put option implied volatility is at 29, November is at 33; versus its 26-week average of 32 according to Track Data, suggesting nondirectional price movement.

3Par Inc. (PAR) closed up $6.43 to $32.46. Hewlett-Packard Co. (HPQ) announced a revised proposal to acquire 3PAR for $30 per share in cash. PAR options were active on 190K contracts according to Track Data, suggesting larger price movement. Paul Foster

Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.

I first discussed Occidental Petroleum (OXY) here on April 27, 2009, at a price of $54.81, and shares of the oil/natural gas giant have totaled misbehaved this summer, falling about 16%, largely on second-quarter results.

Occidental did report a 3.6% oil/natural gas production increase in Q2, but in this supercautious market, the shares were still treated rudely. But I still favor the shares, and here's why.

There is more progress with Occidental Petroleum (OXY), first discussed here on April 27, 2009 at a price of $54.81.

Look for Occidental to post large earnings increases in 2010 and 2011, boosted by strong oil prices, which will offset above-average operating costs.

Occidental, which focuses on oil oil/gas exploration/production and has no refineries, is well-positioned to capitalize on oil's likely, upcoming surge to triple digits. Several global exploration/production projects (Middle East, Latin America) look promising.

Simply, oil is headed north in 2010, and so are Occidental Petroleum's (OXY) shares, which is a major reason I'm reiterating my buy rating for company, first recommended on April 27, 2009, at a price of $54.81.

If you bought OXY in April 2009, you're up about 45%. If you didn't, don't fret: there's more upside ahead, but catch this train now to earn an outsized gain with OXY in the next two to three years.

I'm reiterating my buy rating for Occidental Petroleum (OXY), first recommended on April 27, 2009, at a price of $54.81. If you bought OXY in April, you're up an impressive 52%.

Occidental, which focuses on oil and gas exploration and production and has no refineries, is well-positioned to capitalize on oil's likely upcoming surge to triple digits. OXY's oil and gas production should increase about 6 to 7% in 2009, with another solid increase seen in 2010.

Did you a get chance to establish a position in oil giant Occidental Petroleum back in April? If you did, you're up about 35%, and the future looks bright.

I'm reiterating my Buy rating for Occidental Petroleum (NYSE: OXY), first recommended on April 27, 2009 at a price of $54.81.

It goes without saying, that the oil/oil services sectors are preferred here. Look for oil to remain a major fuel for propulsion for at least three more decades, even with alternative energy source development. And with the aforementioned in mind, Occidental Petroleum (NYSE: OXY) is worth a review.

Occidental Petroleum engages in oil/gas exploration and also makes basic chemicals, plastics, and petrochemicals. The company has proved reserves of 3 billion barrels of oil equivalent in three regions: U.S./North America, Middle East, and Latin America.

TheStreet.com's Jim Cramer says the companies could deliver money to shareholders without sacrificing growth.

What happens if the oil companies start actually recognizing their good fortune -- their sustainable good fortune -- and start boosting dividends the way that Tidewater (NYSE: TDW) (Cramer's Take) did last week with its 67% hike.

Throughout this great run with oil and gas, it seems that the companies themselves haven't caught up with the good fortune. They haven't spent that much on drilling relative to profits, and they have chosen to buy a lot of stock back, never bad. But what if they start returning the profits to shareholders in the form of dividends?

I think that what could happen is that you wouldn't think that Chevron (NYSE: CVX) (Cramer's Take) and Occidental Petroleum (NYSE: OXY) (Cramer's Take) and Exxon (NYSE: XOM) (Cramer's Take) are such nose-bleeders.

The record run of oil, already up a gaudy 400% since 2000, continues, with prices breaking through $122 per barrel on Tuesday, May 6, 2008.

Meanwhile, gasoline prices, up about 20% in the past six months alone, and about 100% in the past four years, show few signs of moderating in the months ahead.

It's the era of high oil/energy prices, and until a readily-available, affordable energy substitute is found and/or oil prices decline, the oil / oil services sector will be in demand, which bodes well for Occidental Petroleum Corporation (NYSE: OXY).

Shares of were trading near record highs when ConocoPhillips (NYSE: COP) started off the new year by announcing that it expected fourth quarter production results to exceed those of the third quarter. But it was good news/bad news for the company this past week.

The good news: The Wall Steet Journal reported that Conoco was now the front-runner to participate in a multiyear, $10 billion project to develop the Shah natural-gas field in Abu Dhabi, beating out such rivals as Occidental Petroleum (NYSE: OXY) and Royal Dutch Shell (NYSE: RDS.A). Abu Dhabi National Oil Co. had been expected to name a partner for the project last year, and oil companies have become frustrated by the delays. Abu Dhabi is trying to meet rising demand for natural gas, which has surged with the building of gas-fired power stations and desalination plants.

The bad news: The company's donation of $5 million to a local cancer center apparently did not impress Alaska state officials sufficiently to allow Conoco to go forward with its nonconforming proposal for a natural gas pipeline project in that state's North Slope. Conoco's proposal had requested that state taxes be fixed on the project for decades, which prompted Governor Sarah Palin to send Conoco a rejection letter. The rejection left TransCanada Corp. (NYSE: TRP) as the sole finalist for the project.

Conoco shares have fallen 5.96% since the beginning of the year, and closed Friday at $83.04.

Akeena Solar, Inc. (NASDAQ: AKNS): A recent licensing deal is still pushing shares up. It hit 52-week high of $15.65 against period low of $2.97.

Teva Pharmaceutical Industries Ltd (NASDAQ: TEVA): TEVA recently got an FDA green light on new generic nausea drug. It's up to $49.08 from 52-week low of $30.81.

Superior Energy Services, Inc. (NYSE: SPN): Superior won a major contract to repair Gulf drill rigs. It jumped to $44.70 from 52-week low of $28.20.

Monsanto Company (NYSE: MON): Monsanto posted outstanding financial results. It traded up up to $123 from 52-week low of $49.10.

Occidental Petroleum Corporation (NYSE: OXY): The market is mad for energy stocks. This one climbed up to $80.93 from 52-week low of $42.06.

Douglas A. McIntyre is an editor at 247wallst.com.

Hess (NYSE: HES) closed at a record high of $104.40 Wednesday. WTI Crude futures are down 0.30% to $95.68 according to Bloomberg. HES overall option implied volatility of 46 is above its 26-week average of 38 according to Track Data, suggesting larger price risks.

Occidental Petroleum (NYSE: OXY) closed at record high of $78.06 Wednesday. OXY operates in two segments: oil-gas and chemicals. OXY has a market cap of $64 billion with long-term debt of $1.7 billion. OXY overall option implied volatility of 34 is near its 26-week average according to Track Data, suggesting non-directional price fluctuations.

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