From a recent Mad Money show:"No, no, no, no, no. Oil's going to $50 and we've got the wrong president coming into office. I need a dividend yield to make that one attractive."

The Real Story Wrap: October 29: Stocks on Wall Street ended a muddled Wednesday with mixed results, after the Federal Reserve cut its target interest rate to 1%. Blue-chip stocks sold off sharply in the final minutes of trading, while technology shares held on to modest gains.
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Buy - Price: 6.60 on Oct. 15
by Jesup & Lamont

[Because of hurricane damage to two rigs, the company expects] revenues to be reduced by $8.7 million and incremental costs to be increased by $12.2 million spread over 3Q and 4Q, and it expects 3Q earnings to be in the range of $0.36-$0.38 per share. We are lowering our estimates for 2008 to $1.20 per share from $1.40 per share. Our 2009 estimates decrease to $2.80 per share from $3.05.... [However,] since we believe the outlook is bright...we are estimating earnings of $1.20 per share for 2008 and $2.80 per share for '09. Our new price target, $35 per share, is based on 12.5 times '09 estimated earnings. Market cap: $797 million.

From a recent Mad Money show:

"HERO is my hero. If the president gets his way and we get more off-shore drilling, HERO is the way to play it."

6.2

Deutsche downgraded seven offshore drillers. RIG and ESV were downgraded to Sell, Deutsche Bank said. Ratings on DO, HERO, NE, PDE and RDC were also cut to Hold, as the stocks are already pricing in several quarters of strong results.

Personal investors probably can't trade in his wake, however if you think he's smart money you can trade alongside Paulson in other areas, explains Pete Najarian. He currently holds large positions Kinross (KGC), Alcoa (AA) and Hercules Offshore (HERO). Najarian likes those names, he said, and he pointed out that there are large insider purchases in Hercules.

like it

Valuation, growth.

value pick with potential

oil rig overcapacity

Bad management