Thursday, April 1, 2010

Bookkeeping: Adding to Atheros Communications (ATHR); Starting Diamond Offshore Drilling (DO)

Atheros Communications (ATHR) *might* be wanting to break out - after a strong morning where is jumped over it's own double top, it has pulled back from the day's highs.  For this move to be more reliable a close over $39.15 or so would be a positive.  For now, I will add a 1.25% allocation around $39.40 and see if the stock can follow through on the day.  Volume is actually quite solid (almost an entire day's action by 1 PM) so I am surprised by this intraday [relative] weakness....

While it makes little sense to me that driller should suddenly jump if they are reacting to a Presidential proposal that will take years (if ever) to implement - I am hoping the move is in reaction to the breakout in crude oil.   We can see some nice moves in the major ocean drillers ....

I will put a 2.5% allocation in Diamond Offshore Drilling (DO) around $91.20... I flipped a coin among a few names.  DO has been good to us in the past.... the company reports Apr 22nd, but results from this sector have largely been poor of late.  However, if oil continues to bust a move higher - earnings reports won't matter much.
  • MKM Partners' Conlon said today's news, even in the best-case scenario without political hiccups, wouldn't lead to incremental drilling until the 2014-2015 period.
The stock market never lets logic get in the way of good speculation...

Diamond Offshore Drilling, Inc. operates as an offshore oil and gas drilling contractor worldwide. The company provides offshore drilling services in the deepwater, harsh environment, conventional semisubmersible, and jack-up markets to independent oil and gas companies and government-owned oil companies. As of December 31, 2009, it operated a fleet of 47 offshore rigs consisting of 32 semisubmersibles, 14 jack-ups, and 1 drillship.

Long Atheros Communications, Diamond Offshort Drilling in fund; no personal position

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