Tuesday, September 2, 2008

Drillers get crushed as oil plummets

Crude oil and natural gas prices have tumbled today, although they are now coming off this morning's lows. In concert, the drillers are down sharply, especially Ensco (calls 2.5% of portfolio), which also got downgraded to Underweight (i.e. Sell) at JP Morgan. One bright spot in the portfolio is Alvarion (calls 15.1% of portfolio), which is up nicely today, albeit on light volume. They may be getting a boost from the dollar's recent strength against the shekel, a reversal of the trend in place during previous quarters.