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American Electric Power Company (NYSE: AEP) closed yesterday at $32.12. So far the stock has hit a 52-week low of $24.00 and 52-week high of $34.34. American Electric Power stock has been showing support around 31.51 and resistance in the 32.45 range. Technical indicators for the stock are Bullish and S&P gives AEP a posi...(Click the story link or go to http://www.marketintelligencecenter.com for the full story)
SUGAR LAND--November 11, 2009--Researched by Industrial Info Resources (Sugar Land, Texas)--Energy and transport infrastructure company Alstom SA (EPA:ALO) (Levallois-Perret, France) and oilfield services company Schlumberger Limited (NYSE:SLB) (Houston, Texas) recently announced that they have signed an agreement for a mutual collaboration under which they will study the technical readiness of power plants to accommodate carbon capture and storage (CCS) systems developed by Alstom. The study will identify steps that a power plant must take to adapt to the CCS systems, evaluate potential storage sites for carbon dioxide (CO2), and also assess the future costs of transporting and storing CO2. The joint offering has been designed so that power plants can incorporate CCS in the future and secure environmental permits easily. Alstom has signed agreements with several power, utility, and oil and gas companies in the U.S. and Europe since 2006 to test CO2-capture technologies, including American Electric Power Company Incorporated (NYSE:AEP) (Columbus, Ohio), The Dow Chemical Company (NYSE:DOW) (Midland, Michigan) and StatoilHydro ASA (NYSE:STO) (Stavanger, Norway).
CVS - CVS Caremark Corp. – Shares of the pharmacy retail chain are up 1.5% to $31.11 perhaps due, in part, to the ‘buy’ rating it received at UBS today. Optimistic options activity took place in the December contract as one investor initiated a bullish risk reversal. It appears the trader sold 4,400 puts at the December 31 strike for an average premium of 94 cents apiece in order to finance the purchase of the same number of calls at the higher December 32 strike for 63 cents each. The investor pockets a 31 cent credit on the trade, which he retains in full as long as shares remain above $31.00 through expiration. Additional profits accumulate if CVS’s shares rally above $32.00.
LIZ - Liz Claiborne, Inc. – A 15,000-lot covered call in the January 2011 contract on Liz Claiborne today suggests shares are likely to recover, albeit at a glacial pace. Shares of the apparel and accessories retailer suffered a 5% decline to $4.55 during the trading session. One investor effectively purchased shares of the underlying stock for $3.30 apiece by selling 15,000 calls at the January 2011 5.0 strike for a premium of 1.25 each. Thus, the trader stands ready to accrue gains of 51% if shares of LIZ appreciate to $5.00 by expiration. The long-term positioning of the covered call play provides several advantages to the investor. One advantage is that the call options do not expire for another 13 months, which leaves ample time for LIZ’s shares to appreciate up to the strike price of $5.00. The 15,000-lot call transaction represents nearly 50% of the total existing open interest on LIZ of 31,502 contracts. Note that shares last traded above $5.00 yesterday at approximately 10:35 am (EDT).
ITMN - InterMune, Inc. – A bull call spread on the biotechnology company today suggests shares could rally significantly by expiration in April 2010. Bullish options activity on the stock belies the more than 3% decline in ITMN’s shares during the session to $10.94. The call spread involved the purchase of 3,750 calls at the April 15 strike for an average premium of 2.25 each, marked against the sale of the same number of calls at the higher April 25 strike for 75 cents apiece. The net cost of the transaction amounts to 1.50 per contract. The optimistic investor is positioned…
(CVS) - CVS Caremark Corp. - Shares of the pharmacy retail chain are up 1.5% to $31.11 perhaps due, in part, to the ‘buy’ rating it received at UBS today. Optimistic options activity took place in the December contract as one investor initiated a bullish risk reversal. It appears the trader ...
BloggingStocks: U.S. electric power demand may be sluggish, due to the recession, but investors should view that as a temporary phenomenon. True, increased energy efficiency across the U.S. economy will be a trend for the next decade and beyond, but relatively ... Read more
One thing is for economic recovery the same as ever. Demand for energy during growth simply must grow. And for those who believe in recovery here are some of energy stocks.
Chesapeake Energy (CHK) mines natural gas. While the price of gas is pushed down by the economic downturn and new technologies which allow to isolate the material from clay. But the recovery will come only with the end of the recession, but at the expense of coal, which generates more pollution. Estimated profit for 2010 is over U.S. $ 2.4 per share. So it is possible to buy those shares for about 12 multiples of expected profits.
Devon Energy (OK) is one of the producers of natural gas and oil (which constitute 86 percent of its sales). At estimated profit of USD 6.2 shares are very attractive to buy that provides 11 multiples of expected profits.
Oil giant ConocoPhillips (COP), among other things, owns 20 percent of Russia's Lukoil. From their lows around 35 USD has bounced up to $52, but still have long way to highs (just slightly below $100). ConocoPhillips is at around 9 multiples earnings per share which is currently one of the cheapest stocks in energy sector.
American Electric Power (AEP) generates electricity. 73 percent of production is from coal-fired power plants, which is not in vogue, but the shares are still nearly 40 percent cheaper than that at its peak in 2007.
Companies featured in this segment: Pfizer Incorporated (NYSE:PFE), Monsanto Company (NYSE:MON), Alstom SA (EPA:ALO), Schlumberger Limited (NYSE:SLB), American Electric Power Company Incorporated (NYSE:AEP), The Dow Chemical Company (NYSE:DOW), StatoilHydro ASA (NYSE:STO), E.ON AG (OTC:EONGY), Total SA (NYSE:TOT), Royal Dutch Shell plc (NYSE:RDS.A), National Grid plc (NYSE:NGG), ArcelorMittal (NYSE:MT), RWE AG (OTC:RWEOY), E.ON AG (OTC:EONGY), Nestle S.A. (OTC:NSRGY)
Companies featured in this segment: American Electric Power (NYSE:AEP), Alstom SA (EPA:ALO), SCANA Corporation (NYSE:SCG), Électricité de France SA (EPA:EDF), Norsemont Mining Incorporated (TSX:NOM), Saudi Kayan Petrochemicals Limited (SAU:2350), part of Saudi Basic Industries Corporation (SAU:2010), Samsung Engineering Company Limited (SEO:028050), BNP Paribas SA (EPA:BNP), ABN AMRO Holdings NV (PINK:ABNYY), HSBC Holdings plc (NYSE:HBC), Arab Banking Corporation (BSH:ABC), Wartsila Oyj (HEL:WRTBV)
Companies featured in this segment: Duke Energy Corporation (NYSE:DUK), DuPont (NYSE:DD), American Electric Power Company (NYSE:AEP), Cairn India Limited (BSE:532792), Oil & Natural Gas Corporation Limited (BSE:500312), Hindustan Petroleum Corporation Limited (BSE:500104), Mangalore Refinery & Petrochemicals Limited (BSE:500109), Iberdrola SA (MCE:IBE), Indian Oil Corporation Limited (BSE:530965)
Companies featured in this segment: NRG Energy Incorporated (NYSE:NRG), Fluor Corporation (NYSE:FLR), Dresser-Rand Group Incorporated (NYSE:DRC), Southern Company (NYSE:SO), BP plc (NYSE:BP), American Electric Power Company Incorporated (NYSE:AEP), General Electric Company (NYSE:GE), Hitachi Limited (NYSE:HIT), Arch Coal Incorporated (NYSE:ACI); Peabody Energy Corporation (NYSE:BTU), China Petroleum & Chemical Corporation (NYSE:SNP), Total SA (NYSE:TOT), China National Offshore Oil Corporation (NYSE:CEO), The Dow Chemical Company (NYSE:DOW), Foster Wheeler AG (NASDAQ:FWLT), ABB Limited (NYSE:ABB), Boubyan Petrochemical Company KSC (KUW:BPCC), Qurain Petrochemical Industries Company KSC (KUW:ALQURAIN), Technip (OTC:TKPPY), National Bank of Kuwait (KUW:NBK), Kuwait Finance House KSC (KUW:KFIN), Larsen & Toubro Limited (BSE:500510), Oil and Natural Gas Corporation (BSE:500312), Indian Oil Corporation Limited (BSE:530965), E.ON (OTC:EONGY), OAO Gazprom (OTC:OGZPY)
Companies featured in this segment: Norfolk Southern Corporation’s (NYSE:NSC), CSX Corporation (NYSE:CSX), Northrop Grumman Corporation (NYSE:NOC), Allegheny Energy (NYSE:AYE), Ameren Services Company (NYSE:AEE), Vectren Corporation (NYSE:VVC), American Electric Power (NYSE:AEP), Duke Energy Corporation’s (NYSE:DUK), AREVA (EPA:CEI)
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