EPS100Momentum's  Instablog

Send Message
Author has a degree in Engineering and is an avid investor in the market. Experience in industrial materials and structures. In college studied atomic & nuclear physics as well as material engineering. Eastern European
My blog:
EPS100Momentum's Instablog at SeekingAlpha
  • Drilling Ban may be lifted a Month Early  2 comments
    Sep 30, 2010 10:35 AM | about stocks: DO, SLB, RIG, BHI, CRR, NOV, OII, WFT, CAM, LUFK, SDRL, XOM, COP, CVX, OXY, TOT, PBR, PTR, CEO, RDS.A, E, REPYY, VE, ECA, PZE, EPE-RETIRED

    Drilling Ban may be lifted a Month Early

    Lifting of Drilling ban a month early should cause Massive short squeeze of historic porportion because when the drilling ban was put in effect it gave the green light to hedge funds to short drillers without any risk by doing so. It created a herd mentality of shorting at will. It caused just about every driller to come crashing down and majority are still trading near the 52wk lows. Some drillers are trading at PE's in single digits, prior to ban on drilling many drillers had PE's in the 20's on average and some even traded with PE's in the 30's or higher.  So you can imagine what will happen if the hedge funds wait to cover until the ban is lifted a month early catching them by surprise : "A Massive short Squeeze of historic proportion".  Problem is these hedge funds are smart money and they are not waiting until the ban is lifted on them by Surprise, they have already started covering as can be witnessed from the price movements of drillers this week, notably DO,SLB,RIG, others too have started to move. Now is the time to search for drillers that have not moved as much yet and still trading in single digit PE's. Waiting till the news comes out will cause you to miss out on vast majority of gains, plus will you be there to buy on the dime right before the spike on the news? Most probably not..

    Drilling Ban analysis due out a month early 

    By DINA CAPPIELLO, Associated Press Writer Dina Cappiello,

    Associated Press Writer – Mon Sep 27, 3:21 pm ET


    WASHINGTON – The government agency in charge of offshore drilling will weigh in ahead of schedule on whether a ban on new deepwater wells should be lifted.

    The chief of the Bureau of Ocean Energy Management, Michael Bromwich, told an investigative panel Monday that he is a month ahead of schedule in issuing a report on the ban. It's due to Interior Secretary Ken Salazar in late October.

    President Barack Obama imposed the drilling moratorium following the April 20 oil spill in the Gulf of Mexico, the largest offshore in history. The ban is set to expire Nov. 30, but federal officials have indicated it could end early.

    The moratorium has come under criticism by the oil industry and local residents for harming the Gulf economy.

     Sector Update: Energy Up, Offshore Drilling Ban Seen Lifted Soon

    Read more: http://community.nasdaq.com/news/2010-09/sector-update-en......


    Dow Jones U.S. Oil & Gas Index: 481.21 Wednesday regular session close

    NYMEX Benchmark Crude: +1.14 (+1.41%) to 81.91

    Top Energy Stocks

    XOM: +0.26%

    CVX: +0.25%

    SLB: +0.33%

    OXY: +0.42%

    COP: 0.00%

    Energy issues are mostly higher before the bell, while oil prices rise as U.S. stockpiles decreased unexpectedly. Canada's Crocotta Energy Inc (CTA) raised its production outlook for 2011 as it expects to increase capital expenditure over the next five quarters. In Russia, Deputy Prime Minister Igor Sechin supported Rosneft OAO's (ROSN) plan to sell gas to China, according to Reuters. Sechin, who is also Rosneft's chairman, acknowledged that such a move would challenge Gazprom OAO's (GAZP) current monopoly on exports. Japanese oil explorer Inpex Corp (OTC:IPXHF) is expected to retreat from Iran's Azadegan oil field project amid pressures from the United States which continues to impose sanctions on Tehran in protest against the country's nuclear program. In the United States, the White House is seen close to ending its deep-water drilling moratorium by imposing new safety rules. Such a move would directly benefit exploration companies including BP plc ( BP ).

    Disclosure: Long call options of Oil Driller "SDRL"
Back To EPS100Momentum's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (2)
Track new comments
  • EPS100Momentum
    , contributor
    Comments (46) | Send Message
    Author’s reply » Disclosure: Went long Call options of SDRL


    After reading about recommendation by : Joseph L. Shaefer


    Joseph L. Shaefer is the CEO and Chief Investment Officer of Stanford Wealth Management, LLC, a Registered Investment Advisor. A retired General Officer, he spent 36 years of active and reserve military service, the first six in special operations, the next 30 in intelligence. He is professor of Global & Security Studies (Intelligence, Counterterrorism, Illicit Finance, etc.) at American Public University / American Military University. He analyzes the Big Picture first, then selects asset classes, sectors and individual securities.


    After learning the securities business at Kidder, Peabody, Joe started his own discount brokerage firm in 1976, which he merged into Charles Schwab & Co. in 1979. At Schwab, ...More Joe became a VP, then Regional, then Senior VP, with his final job head of Schwab's Fixed Income Investments. He retired to found Stanford Wealth Management, LLC, in 1990.


    Author of the investment primer Bringing Home the Gold, Joe is also editor of Investor’s Edge®. In the 11 years from inception through 2009, the two Investor’s Edge® model portfolios climbed from $400,000 ($250,000 in one, $150,000 in the other) to $1,237,127. That same $400,000 invested in the S&P 500 fell to $362,963 during those 11 years.


    Joe has been featured in Forbes, Barrons, Financial World, the Wall Street Transcript, and numerous other publications, and has been a guest on ABC, NBC, PBS, FNN and CNBC.


    Stanford Wealth Management strives to manage risk and to manage wealth. In that order.
    30 Sep 2010, 11:50 AM Reply Like
  • EPS100Momentum
    , contributor
    Comments (46) | Send Message
    Author’s reply » Don't want to say I told you so,


    so I won't..
    3 Nov 2010, 05:00 PM Reply Like
Full index of posts »
Latest Followers


More »
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.