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GERN is another one of my picks that may be positively affected from the outcome of the election...It's for treatment of physical and mental problems using stem cells...Very good company...
I see this board is almost dead...It needs someone to get it back up and running...HIG had a nice bounce today...AIG up around 10% also...Many bargins out there...Don't pass them up...
Im looking tonight
are we ready to get a new play?
Playing by the rules DNR stoped out now were waiting on Visa to make a move.
**Pattern Alert**
VISA
Let price confirm. Adding second chart just something a little extra.
Might decide to add another chart up here today. For a possible 25%.
Might decide to add another chart up here today. For a possible 25%.
yeah sure sure lol
having more fun these days with Mike than the old guys :P?
http://www.morevalue.com/glossary/restrict/Triple%20Witching%20Day.html
Triple Witching Day
Definition: "Triple-witching" day is the third Friday of the month that ends each quarter. It marks the simultaneous expiration, at the close, of stock options, index options and index futures."
Implications: The impact of "triple witching" has been associated with increases in the volatility of the market. The increased volatility increases the uncertainty about prices of the underlying stocks.
Stock options that are exercised, or the underlying stock bought/sold, creates large additional volume. With unwinding large volumes of stocks, there is an increase in index arbitrage (i.e., the simultaneous purchase of index futures and the sale of a basket of stocks, or vice versa, when the values of the index and the underlying stocks become "out of wack" with each other). Meanwhile, some investors are trying to unscramble whether to, say, buy/sell a position, in options or futures contracts, similar to their current ones (i.e., roll-over the existing contracts) or get into different ones.
The increased volatility has prompted the options industry, with the blessing of the SEC, to take some action. Although options on the S&P 100 and on stocks still expire at the close, S&P 500 options and futures have been moved up to settle for cash based on opening prices on expiration Friday, according to Barron’s June 24 (1996) edition.
There is one other reason for the increase in volatility that the article did not even mention. The composition of the Russell 2000 index, a barometer for small-cap stocks, is reconfigured each June by Frank Russell Co., which created the index. Thus, there is added trading activity in the delisted stocks (i.e., removed from the index) as well as those added to the index.
What does it mean by triple witching day? thanks
Chart Updated with new stop applied.
well we have a nice two day run on DNR. WTG! Almost back to $38 here
Will have a video update on this some time this week and update the chart. :) Patience
Just my WAG. You could be right too :P LOL
NICE chart! buTT 12,400 max IMVHO. My WAG.
12,400 max IMVHO :P
INDU.. we are going to get a bounce next week. 12600 is my target on this short run.
Nice. DNR I thought support was $33.5 so I grabbed some there then it to $33 I was like "no good".. I was biting my fingernails in the morning. When I came out of the meeting after 5 hours, it went back up to close above $34.5. WEEEEEEEEEEEEEE
We really need DNR to stay above $34.75 (the last breakout)
DNR back over 34. Scared me a little when it dipped under 33. Next resistance 36.62. :) Go DNR!
DNR some DD
Ancient CO2 Helps Extract Oil From Nearly Tapped-Out Wells
BY MARILYN ALVA
Posted 6/3/2008
It might seem odd for an oil and gas company to put drawings of dinosaurs and other prehistoric creatures in an annual report.
Denbury Resources (DNR) doesn't see it that way.
The firm says its very foundation is based on geologic events that happened during the dinosaur age.
As the story goes, a volcano erupted, trapping carbon dioxide in porous rock that got buried underground.
Humans arrived. The wheel was invented, and on it went. Today, that trapped underground CO2 is still there, outside the city of Jackson, Miss.
Denbury has mineral lease rights to most of it — some 42,500 net acres in what it calls the Jackson Dome. The field holds about 5.6 trillion cubic feet of proven reserves.
"We control the only known source of CO2 in this region of the U.S.," said Phil Rykhoek, Denbury's chief financial officer.
That source is the only one known to exist east of the Mississippi. The surrounding region is home to numerous oil and gas fields abandoned by drillers who moved on to greener pastures when wells ran dry.
CO2 can bring those wells back to life. By pressure-pumping liquefied CO2 into the porous rock, trapped oil can be freed and extracted.
While oil and water don't mix, CO2 and oil are a perfect match.
But pipelines are needed to transport the CO2 to oil wells.
"We have CO2, pipelines and oil fields. So we have all the pieces," Rykhoek said.
Denbury has snapped up depleted oil wells at reasonable rates. It then works to revive them with CO2, which acts like a solvent.
While the old wells might be cheap, CO2 extraction is costly. High costs aren't a problem when oil prices top $100 a barrel — or even $60 a barrel. Rykhoek says Denbury breaks even when oil prices are as low as $30 to $35.
"We're making lots of money," he said.
Year-over-year profit gains rose to triple digits starting in last year's fourth quarter.
First-quarter earnings rose 144% to 39 cents a share from a year earlier. Denbury said the jump was due to higher oil prices and higher production levels.
Oil production from the tertiary deposits in the first quarter rose 46% over the earlier year, averaging 17,156 barrels of oil equivalent a day. Total production, including natural gas, rose 17% to 44,900 BOE a day.
Total revenue grew 82% from last year's comparable period to $317.3 million. In addition to CO2 production, the sum also included higher natural gas sales from the Barnett Shale around Fort Worth, Texas.
Executives say future expansion targets CO2 projects almost exclusively. The third of eight planned expansion phases just started in an area of Mississippi known as the Tinsley field.
"They're carving out their competitive (niche) in the Gulf Coast," said analyst Andrew Coleman of UBS Securities. "They plan to buy more oil fields and use CO2 to recover more oil from them."
Analysts tracked by Thomson Reuters estimate that full-year earnings will jump 62% from last year, to $1.80 a share, and rise 16% the next year.
Oil firms have used CO2 methods since the 1970s, especially in the Permian Basin of western Texas. But the practice fell off in the 1990s, when low oil prices made it unprofitable.
Denbury has been building its CO2 business since 2001, when it bought wells and a pipeline in the Jackson Dome that had essentially been sold off by Royal Dutch Shell (RDSA) to industrial firm Airgas. (ARG)
Before then, Denbury was a traditional exploration and production company.
Hundreds of mature oil fields in Denbury's target states of Mississippi, Louisiana and Texas are still ripe for Denbury's picking, Coleman says.
"They have not been flooded with CO2," he said. "Denbury is buying from anybody who has old fields."
The oil that Denbury coaxes out of mature wells happens to be high-quality light crude, which fetches the best prices.
"The oil that most people are producing nowadays is of a lower quality," Coleman said.
To get more CO2 supply to wells, Denbury plans to build a 300-mile pipeline to the Houston area. The $750 million project is expected to be completed in late 2009 or early 2010. Meanwhile, Denbury plans to drill five new CO2 source wells this year to raise production capacity and reserves.
It says it has enough existing projects and reserves to keep output growing for the next six years.
Then what? That's when things could get interesting.
"The bigger issue longer-term is assuring they have enough CO2," said Johnson Rice analyst Ken Carroll.
At some point, CO2 from natural underground sources might run its course. So Denbury is looking at ways to capture CO2 from man-made sources such as gas and chemical plants.
Since CO2 emitted into the air pollutes, Denbury's scheme would have the added benefit of reducing the greenhouse effect. It would swipe CO2 that otherwise would mess up the air and then pump it into the ground to free more oil.
"It's a beautiful trade-off," Coleman said.
Rykhoek says Denbury is talking to several interested parties in the Gulf region about gasification projects. "We would love to take their CO2," he said.
Thanks ithy. are you back into the game yourself?
DNR through 36. *smile*
Beautiful play here for those with...what's that langy? PATIENCE *smile*
We have some mild resistance at 36.62 to get through.
CURRENT PRICE
36.15, just below resistance, 36.62 ± 0.62, type single, strength 8
RESISTANCE ABOVE
+3.6% at 36.62 ± 0.62, type single, strength 8
SUPPORT BELOW
-4.6% at 33.74 ± 0.57, type triple, strength 10
-8.9% at 32.22 ± 0.55, type double, strength 4
-11.5% at 31.3 ± 0.53, type triple, strength 10
-15% at 30.04 ± 0.51, type triple+, strength 10
-19.4% at 28.5 ± 0.48, type triple+, strength 10
-24.5% at 26.7 ± 0.45, type triple+, strength 10
-29% at 25.1 ± 0.43, type single, strength 5
-32.8% at 23.77 ± 0.4, type single, strength 8
http://www.stockconsultant.com/consultnow/basicplus.cgi?ID=sample&symbol=DNR&94651#ttop
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DNR .. we are back over the entry price of $34.75. Mikeanthony suggested a consolidation. Congrats to those who waited for the consolidation and got back into the game.
DNR go go go.. testing $36 now!
finally some news.. weeee
DNR:
http://biz.yahoo.com/bw/080602/20080602005425.html?.v=1
Genesis Energy, L.P. Completes Transactions with Denbury Resources
Monday June 2, 8:00 am ET
HOUSTON--(BUSINESS WIRE)--Genesis Energy, L.P. (AMEX:GEL - News) (Genesis) and Denbury Resources Inc. (NYSE:DNR - News) (Denbury) announced today that they have completed two previously announced carbon dioxide (CO2) pipeline transactions with a total value of $250 million. The two pipeline transactions are as follow:
* Genesis purchased Denbury’s Free State Pipeline for $75 million ($50 million of which has been paid in cash and $25 million of which is in the form of Genesis common units), and entered into a twenty-year transportation services agreement to deliver CO2 on that pipeline for Denbury’s use in its tertiary recovery operations. The Free State Pipeline is an 86 mile, 20” pipeline that runs from Denbury’s CO2 source fields at Jackson Dome, near Jackson, Mississippi, to Denbury’s oil fields in east Mississippi (its Phase II area of operations). Under the terms of the transportation services agreement, Denbury has exclusive use of the pipeline and is required to use the pipeline to supply CO2 to its tertiary operations in that region. The services agreement provides for a $100,000 per month minimum payment plus a tariff based on throughput. Denbury has two renewal options for five years each on similar terms. The number of units issued will be based on the closing price of Genesis common units on the five trading days from May 28, 2008 through June 3, 2008.
* Genesis entered into a twenty-year financing lease transaction valued at $175 million wherein Genesis acquired certain security interests in Denbury’s North East Jackson Dome (NEJD) Pipeline System. The NEJD Pipeline System is a 183-mile, 20” pipeline extending from Jackson Dome to near Donaldsonville, Louisiana, and is currently being used by Denbury for its Phase I area of tertiary operations in southwest Mississippi. Denbury has exclusive use of the NEJD pipeline system and will be responsible for all operations and maintenance on the system.
Grant E. Sims, Chief Executive Officer of Genesis said, “I am extraordinarily pleased to announce the completion of this transaction. With this achievement, we have completed transactions valued at more than $800 million during the last twelve months. The transactions announced today will be immediately accretive to our unitholders and are expected to increase our cash available for distributions by approximately $30 million per year less our incremental interest expense associated with the $225 million in total cash we borrowed to consummate the transactions.”
Gareth Roberts, Chief Executive Officer of Denbury said, “We are excited to complete this transaction with Genesis, which not only provides Denbury with attractive long-term financing for our CO2 operations infrastructure, but also provides feedstock for Genesis continued growth. With the funds from this transaction, we will repay our bank line and have cash left over, giving us plenty of credit capacity for our anticipated future growth.”
The terms of the transaction were approved by the Board of Directors of Genesis’ general partner following the approval and recommendation of that Board’s audit committee, which is comprised entirely of independent directors, with the Denbury board members abstaining from the vote. The Genesis audit committee engaged Credit Suisse Securities (USA) LLC to act as financial advisor and to render a fairness opinion and Bracewell & Giuliani to act as its legal advisor.
Genesis Energy, L.P. is a diversified midstream energy master limited partnership headquartered in Houston, Texas. Genesis engages in four business segments. The Pipeline Transportation Division is engaged in the pipeline transportation of crude oil and, to a lesser extent, natural gas and carbon dioxide. The Refinery Services Division primarily processes sour gas streams to remove sulfur at refining operations, principally located in Texas, Louisiana and Arkansas. The Supply and Logistics Division is engaged in the transportation, storage and supply of energy products, including crude oil and refined products. The Industrial Gases Division produces and supplies industrial gases such as carbon dioxide and syngas. Genesis’ operations are primarily located in Texas, Louisiana, Arkansas, Mississippi, Alabama and Florida.
Denbury Resources Inc. (www.denbury.com) is a growing independent oil and natural gas company. The Company is the largest oil and natural gas operator in Mississippi, owns the largest reserves of CO2 used for tertiary oil recovery east of the Mississippi River, and holds significant operating acreage in the Barnett Shale play near Fort Worth, Texas, onshore Louisiana and Alabama, and properties in Southeast Texas. The Company’s goal is to increase the value of acquired properties through a combination of exploitation, drilling and proven engineering extraction practices, with its most significant emphasis relating to tertiary recovery operations.
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although we believe that our expectations are based upon reasonable assumptions, we can give no assurance that our goals will be achieved. Important factors that could cause actual results to differ materially from those in the forward looking statements herein include the timing and extent of changes in commodity prices for oil, ability to obtain adequate credit facilities, managing operating costs, completion of capital projects on schedule and within budget, consummation of accretive acquisitions, capital spending, environmental risks, government regulation, our ability to meet our stated business goals and other risks noted from time to time in our Securities and Exchange Commission filings. Actual results may vary materially. We undertake no obligation to publicly update or revise any forward-looking statement.
Little bit greener slow play
Hey Mike, do you mind posting your chart analysis on TRA? lthy brought up that TRA started to trade like the DNR breakout. Can you please compare the two and see if they do trade in similar fashion? Thanks much in advance.
DNR tested support at 33.50. little bounce this after noon...I'm still holding on to my hope. :)
Holding up well. I feel a market bounce this week, I hope I am right. :)
DNR coming back to test support..looks like a good buy here IMHO.
still in. im positive in 2.30 bid 2.45 ask 2.60. lets hope for a rebound week.
How did you do with this one?
Remember its just a trade :)
Hope everyone has a great weekend. Relax and have safe fun. See ya tuesday.
getting close!
DNR broke last 5 minute high about to trigger 10 minute. lets see.
Great play. :)
yep thats what i am betting on. 10 june 35. 2.30. lets see
DNR: Hoping that it holds 35.40 here.
thinking now might be a good time to reenter.
Thank you Mike. I just reentered here, at 36.05, dont want to miss this ship. Trying to be more confident and patient in the future. My trading style is costing me to much nerves.... and money, I admit. Trying to improve this in the future, thanks for your advise!
This is a great video. Thanks for the in depth explanation of this play. *smile*
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