Rob Black's Energy Market Roundup For May 1 (CCJ, DO, GSF, NBL, RIG)

Morgan Stanley downgrades the following drillers to Underweight based on valuation: TransOcean (RIG), Diamond Offshore Drilling (DO), Noble Energy (NBL) and GlobalSantaFe (GSF). Firm thinks that while there is limited downside, there is also limited upside, absent an industry-wide levered recapitalization.

Cameco Corporation (CCJ) reported earnings of $0.32 which was up from $0.07 in prior year quarter. Revenues rose 151% to $542 million. The company cites improved results in the uranium business for higher earnings. Cameco expects earnings to be considerably lower in the 2nd quarter versus 1st quarter, reflecting reduced uranium sales volume.

The Wall Street Journal reports Goldman Sachs is placing a bet on "cellulosic ethanol," the alternative-fuel technology touted by President Bush in his State of the Union address earlier this year. The firm is investing 30 million Canadian dollars (US$26.8 mln) for a minority stake in Iogen, a closely held company that has been at the forefront of efforts to turn agricultural waste into ethanol.