Michael Happel...catalyst for today's rise.
The International news wires in foreign trading (see Yahoo SLB news) were quoting the sector's rise being related to the bombings; however I think what we've seen is a 2 day lag as Brokerage Houses, fund managers and traders have had 1-2 morning meetings/ time to think - post Acampora; and formulated & promoted strategies toward diversifying to undervalued sectors. The Russell Index moved well; small caps and value stocks dominated the conversation on all financial mediums today and yesterday. This has not been the case lately. We saw sector rotation - this was 50% of the driver, short covering 30%, the bombings 20% and crude oil - 0 %...all most forgot those damn shorts !
A good day. Where are the true remaining bargains ? - DO, NE, RIG really didn't move as well as the GOM Jackup oriented drillers like FLC - with big GOM exposure, MDCO, ESV, RDC & my rabbitt CDG. Go figure - you would think it would be deep-deep-deep; with RIG, SCSWF, CXIPY, CDIS et al.-- big caps will break out first, but keep an eye on small cap niche players here - I love OMNI, SCSWF, CXIPY & CLB - in that order. RIG is a phenomenal buy still today (or monday) as it didn't really explode ? Next week will really be interesting... Will this weekends YEN revelations put a brake on this - fundamentally it should temper things to a big degree. The reality of facts are not good No new positive news on the crude oil front, YEN & Chinas potential devaluation cloud is ominous and should be heeded by all sectors - especially the big cap S&P's - I actually would have said we would have had a 5-6% sell off today if I only had this factual news in which to base an opinion....quite unbelieveble - a 2 day display of irrational exuberance in the patch ? I hope not, I'm obviously long, and I LOVE this sector over 1-3-5 years! But - there is no reason for this to have happened... but you gotta take it when you can get it sometimes.
Had a nice 1 day play in OMNI, but puked on my weenie GLM short - did it so I could say that I did it... small short trade, waited for a decline off the open got in at 13 15/16 and after watching it bounce but with no real downside trend ''play'' off of the TSC GLM story - I covered for a few pennies loss; Shorting is not fun; gotta be glued to the damn screen - I'll leave it for the guys in the black hats - I have sinned today (shorting the patch -well it ''was'' GLM afterall) I shall not again.
Anyone following OMNI and have you picked up on the STRONG accumulation on every single selloff since the first of the year - like clock work ? Solid, rising star in the patch. Earnings upgrade for 1999 and super International expansion move into South America with a seismic service acquisition. Strong analyst BUY ratings. These guys are for real - had the International expansion plans from the get go in their first annual report.
gotta go; Maria B gonna talk up the 'patch right now on CNBC ...don't you wish we all had instinet/24 hour electronic trading ! |
