Add FCX and WFT Calls

Cautiously Play More Market Upside

By Bryan Bottarelli
Tuesday, May 29, 2007 10:50 AM EDT
Tue, 29 May 2007 14:50:00 GMT

Dear Bottarelli Research Member,

Welcome back – and I hope you had a relaxing Memorial Day weekend.

As a quick administrative note, I’m happy to announce that we’ve successfully switched hosting companies this weekend. This should make a noticeable difference in the delivery times of our email alerts. Also (as promised last week) we’ve also extended your membership one full month as a “make good” on any website delays. As of this morning, we’re once again running at 100%, so with these improvements in place let’s dive into today’s action!

As we kick off a shortened trading week, the markets are once again screaming out of the gate – which has triggered an upside forecast in Freeport-McMoRan Copper & Gold (FCX – NYSE).The major copper, gold, and silver firm has 2,813,089 metric tons of proven and probable recoverable ore reserves – and the new 52-week high set this morning points to further upside ahead. Let’s jump cautiously on the call side by adding the FCX June 75 Calls (FCX FO) to our ledger.

FCX

PLAY: Buy the FCX June 75 Calls (FCX FO) at or under $3.30, good for the day. Current bid/ask spread is $3.00 to $3.30. Place a protective stop loss at $1.90.

I’d also like to play calls on Weatherford International (WFT – NYSE). WFT provides equipment/services for oil and natural gas drilling in the United States, and they account for more oil-field technology patents than any other company (other than Halliburton). I’ve learned the hard way that WFT should be bought on any dips, and now looks like the perfect time to strike. With oil down over $1.24 in early trading, I’d like to use the weakness as a buying opportunity. Let’s add WFT July 55 calls to our ledger as well:

WFT

PLAY: Buy the WFT July 55 Calls (WFT GK) at or under $2.75, good for the day. Current bid/ask spread is $2.50 to $2.65. Place a protective stop loss at $1.40.

SMALL CAPS REMINDER: If you have yet to join Bottarelli Research Small Caps, then your window of opportunity is quickly closing. In fact, you have less than 48 hours before your “reserved” small cap space is released to the public, so the time to join is now!

Our newest pick (which you can buy today) is a “pure play” on the most advanced oil service technology on the market. It’s a simple concept, really. If you think that oil will continue to be in high demand, then this small cap gem is perfectly positioned to offer the most advanced early-stage exploration services to the world’s leading oil and gas companies. They’re the innovative leader in land seismic imaging – which means they offer oil and gas companies integrated seismic data that helps them to identify what lies under the surface for land, marine, arctic, desert, and even fractured reservoir regions. And get this: Unlike 3-D models of the past, everything this company does is in 4-D and in real time. Just listen to the leading oil and energy experts:

“The more a new technology reduces the amount of time sent drilling, the more willing a client is to pay up. Offshore wells can cost $500,000 a day to drill, using new technologies to cut drilling time and boost the likelihood of success carries far more value”
– John Dowd, Fidelity energy analyst

“The winners will be those that can deploy the newest technologies to boost their reserves. Since 2003, those companies ale to boost reserves to the greatest degree saw an average 303% stock price gain”
- Barron’s, May 28th 2007

Make no mistake: The time to buy this company is now. Their Q1 revenues just increased 91% (which is amazing) but get this: They expect Q1 to be their weakest quarter of the year! Just imagine the upside when they start increasing Q2, Q3, and Q4 revenues by 100%! The gains are just beginning, so the time to own this stock is now.

With the stock up 73.64% over the last 52 weeks, quarterly revenue growth up 91% year over year, and average trading volume of 975,000 shares per day, this is a stock that you need to add to your small-cap portfolio immediately. You can access our full write-up in the Members Area, but the first step is to join Bottarelli Research Small Caps now. Spaces are limited — and so is time — so click below and reserve your space within the next 48 hours:

http://www.bottarelliresearch.com/small-caps/offer/O2710K2SYZ/

Or, you can jump directly to our Small Caps Subscribe page.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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