With the oil spill approaching the bullshit marshes off of Louisiana, I am enamored by the opportunity at hand for many publicly traded companies. First, let me just say, the blow out protector, sold by Cameron International Corporation (CAM: 37.15 -4.01%) to BP plc (ADR) (BP: 51.62 -1.79%) , is NOT under warranty is more than 10 years old. From what I gather, there is no risk to CAM’s revenue stream at all, barring the formation of some fucked up Government oversight committee that will demand inspection of CAM’s products. From what I hear, the blow out might have been an operational issue, not mechanical, leaving both BP plc (ADR) (BP: 51.62 -1.79%) and Transocean Inc. (RIG: 71.15 -9.37%) in the soup.
BP plc (ADR) (BP: 51.62 -1.79%) will get hit with some stiff charges; but they have vowed to sustain their 6.3% divvy. Down that these levels, the risk/reward for BP is okay. As for Transocean Inc. (RIG: 71.15 -9.37%) : they are covered AND MORE. As a matter of fact, they might book a 300 million dollar balance sheet windfall, due to the destruction of their bullshit/faulty deep water oil rig. Nevertheless, with Congress convening on 5/6 to “investigate” this issue, I suspect RIG will get blasted pretty bad, which in turn might lead to investor backlash.
In The PPT, I have an entire watchlist of stocks that might benefit from the clean up efforts, like OMNI Energy Services Corp. (OMNI: 3.16 +5.33%) , (CLH: 63.7499 +2.48%) and Trico Marine Services Inc (TRMA: 2.67 +1.52%) . Naturally, everything is speculation now. But, as in all tragedies, opportunity lies in the balance. I will have you know, I am just the guy to seize such an opportunity, while smoking on a monstrous sized illegal cigar.
UPDATE: Wow, there is some serious fall out to the oil spill. All off shore drilling stocks are getting poleaxed this morning. All companies to do with rig production: smoked. Here is a list of some stocks getting mauled: ENSCO International Incorporated (ESV: 45.68 -6.07%) , Hercules Offshore, Inc. (HERO: 3.93 -7.96%) , (CAM: 37.15 -4.01%), Halliburton Company (HAL: 29.3604 -7.09%) , (RIG: 71.15 -9.37%), Diamond Offshore Drilling, Inc. (DO: 77.49 -6.35%) , (CIE: 11.08 -7.51%) , Mariner Energy, Inc. (ME: 23.00 -7.44%) , W&T Offshore, Inc. (WTI: 9.45 -6.99%) , Pride International, Inc. (PDE: 30.11 -4.93%) , Noble Corporation (NE: 38.18 -7.01%) , Rowan Companies, Inc. (RDC: 29.34 -6.32%) , Dril-Quip, Inc. (DRQ: 60.75 -7.42%) , Tesco Corporation (USA) (TESO: 12.27 -3.84%) , TETRA Technologies, Inc. (TTI: 13.38 -6.04%) , National-Oilwell Varco, Inc. (NOV: 43.20 -3.49%) , Baker Hughes Incorporated (BHI: 48.37 -5.93%) , Schlumberger Limited (SLB: 70.6726 -3.39%) , Helix Energy Solutions Group Inc. (HLX: 14.60 -5.13%) , Oil States International, Inc. (OIS: 46.63 -4.43%) , Oceaneering International (OII: 63.21 -6.13%) , (EXXI: 16.35 -13.08%) , CGG Veritas (ADR) (CGV: 29.93 -6.64%) , FMC Technologies, Inc. (FTI: 69.64 -5.02%) , Stone Energy Corporation (SGY: 16.11 -7.73%) , Plains Exploration & Production Company (PXP: 28.64 -6.71%) , Apache Corporation (APA: 97.25 -5.51%) , McMoRan Exploration Co. (MMR: 11.53 -11.72%) , Anadarko Petroleum Corporation (APC: 63.561 -5.60%) , Noble Energy, Inc. (NBL: 75.65 -3.32%) , (AXAS: 2.85 -6.56%) , Penn Virginia Corporation (PVA: 25.77 -5.78%) .
Without a doubt, the market is due for a sell off. With the Goldman news, coupled with the take down of the entire oil industry, we may get a sharp decline today, AND MORE. However, these are the type of events that panic investors out of solid names. If you can time it right, I am sure many of the above names will rebound sharply off of their panic-mode price declines.
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Fly:’
What do you make of the DOJ/GS criminal charges probe. My guess is that they’re heading for a cul de sac where they find a bag of shit.
It is bullshit. But I will not add to my goldman position until the mid 140’s (providing it gets there)
On just the noise about potential criminal charges, all the GS-cooperating GS employees and former employees who were accepting the “help” of GS’ attorneys are right now lawyering-up on their own. Those lawyers will advise them to save themselves by cooperating.
The above is not a problem only if you believe that GS did nothing wrong.
Goldman skates. This is utter bullshit.
Political theater, with the Obama-Holder clown team thinking they finally have an issue that will save their crumbling approval ratings.
Unfortunately, Holder vs. Latham Watkins is like Daffy Duck v. Darth Vader.
__________
Yep Yep,
A Good friend of mine is pretty high up at LW. I imagine he can’t wait for the chance to make Holder et al look like clowns
LW?
Latham Watkins
Goldman reinvents themselves…….Govt. proves they killed the shark.
Everyone walks uber fucking wealthy. Better then The Sting
Its a square root sign recovery!
Gintski stocks fixing to soar! Clickety Clank
That is the right way to think about this. There is no way that the current banking business model can be sustained. If I were GS, I would see this as a way to get ahead of the curve. It’s time to reinvent themselves. You know, all that shit about capitalism shifting to where there’s opportunity, being sharks, swim or die, and the heroic nonsense. Frankly, I don’t understand why they don’t stand and say they’re going to start making markets on an energy trading market. I mean, they could make serious cash sitting around with their fingers up their asses.
try using the facts once in a while… ratings are going up, up, up!! Not only on reaming GS, but on the healthcare bill. They are bringing it, which is far more than the teabaggers can say!
oh, and btw, VECO is almost there… only a point away from my buy.
I finally signed up for PPT
Now I wont b a poseur when my shiny new mug arrives 😀
Aww noodle boy it must be my magical picks you seek, no?
speaking of tragic opportunity, will IBC’s resident meteorologist be returning for deacon of death season?
Second. I miss the writings of Dr. Cane.
Being a Louisiana native, I take offense to your calling the marshes of Louisiana bullshit. These waters and marshes provide a large portion of the seafood that the country enjoys, and a huge recreational fishing and hunting industry that will be destroyed for years to come. This is a nightmare of epic proportions and the cost will be in the billions, not to say the environmental impact. I have many friends and family that rely on these waters for their livelihood. This will push many of them into bankruptcy.
I feel for them
This will be bigger than the Exxon spill, hell they have not even figured out a way to stop it yet.
Louisiana is home to some of the best and most ruthless lawyers in the land, and you better believe that they are lining up in droves. BP is playing the big PR game right now, but they have it coming their way for sure. The litigation against Exxon will look like small claims court compared to what is to come
BP blew up that pipe in Alaska recently too, from lack of maintenance. BP sucks.
Come in here, dear boy, have a cigar.
You’re gonna go far, you’re gonna fly high,
You’re never gonna die, you’re gonna make it if you try;they’re gonna love you.
Well I’ve always had a deep respect, and I mean that most sincerely.
The band is just fantastic, that is really what I think.
Oh by the way, which one’s Pink?
And did we tell you the name of the game, boy
we call it Riding the Gravy Train.
We’re just knocked out.
We heard about the sell out.
You gotta get an album out,
You owe it to the people. We’re so happy we can hardly count.
Everybody else is just green, have you seen the chart?
It’s a helluva start, it could be made into a monster
if we all pull together as a team.
And did we tell you the name of the game, boy
we call it Riding the Gravy Trail.
By the way…. which one is Pink?
________
Pink isn’t well. He stayed back at the hotel, but they sent me along…
It’s probably early, but CAM may be a good buy. These blow out preventers are gonna get renewed and upgraded.
http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_C/threadview?m=tm&bn=2946&tid=1937&mid=1941&tof=1&rt=2&frt=2&off=1
Sometimes you find a good explanation in a silly place like Yahoo message boards.
Nice how you got your name on the sinking rig. The IBC marketing campaign rocks!
Bought HAL $29.50
and, stopped out at $30.50, that was easy.
What about the insurance side of the situation? Who are the players?
My allergies are AWFUL today. Hard to concentrate.
the GS saga will play out all summer long, so who knows what will happen week to week.
not to mention the Euro group saga which will drag along thru the summer and this oil spill will be a mess thru the summer.
so, next up? another earthquake, volcanic eruption, ponzi skeems[sic] uncovered, you pick.
Tidewater TDW and Seacor CKH are posting nice gains today…
whats goin on in gs this morning?
im oblivious to news, anyone care to fill me in?