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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