The Wall Street Journal online edition reported late Sunday that Williams Companies (WMB) has gotten serious about buying Barrett Resources (BRR). This is starting to look like a bidding war since Shell Oil (RD) has a 60 dollar bid on the table. The WMB bid works out to be in the low 70's per share. You might recall that Shell recently lost a bid to take over Australia's Woodside Petroleum a few weeks ago. This was a case where the Australian government stepped in because they didn't want their most productive oil producing area lost to a foreign company. So Shell may be inclined to up their bid. Devon Energy (DVN) may also be a bidder. Friday, BRR closed at 67.30.
In the, what goes up....must go down category, is VPHM. Barron's is questioning the efficacy of the companies cold medicine.
The market internals were mixed to improved last Friday. The screened stock ratio improved significantly at 7.3 to 1.4 favoring buying. The volume returned to the up-trending stocks. This drops my estimate of market risk back to low.
There was a pretty good mix in the screening, maybe fewer tech stocks in this group. The oil/oil service stocks began a bounce last week, we'll have to see how far it carries though, remember the inventories have been on the rise lately.
Long: APH, CBRL, CORR, CVG, FDRY, FLR, PCP, KMG, SANM and SVRN.
Good Trading!!
Sam
savvy-trader.com |
