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WSNC
Traders Alert
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 Elray
Gaming. Inc. (OTC:ELRA)
Online and mobile casino technology, smaller version of Zynga (ZNGA)
- 14 million outstanding, low float...target $0.50+
View Profile/Chart --- ELRA
Quote
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Iraq Oil Refinery Attack
Shows Need for EarthSearch (ECDC) Systems
By:
Staff Reporter, Tom Bustamante
Last Updated: March 02, 2011 - 1:56pm EST
(NEW
YORK)--Over the weekend gunmen attacked Iraq's largest oil refinery,
killing a guard and detonating bombs that forced the facility to
halt operations, possibly up for 2 years.
Refinery and Pipeline Security
This attack
shows the need for the need to secure oil refineries, and pipeline
infrastructure from possible sabotage, of threats from militants, or
public disturbances.
One such company currently developing systems for this area is East
Coast Diversified Corporation (OTCBB:ECDC),
which develops access control and pipeline GPS and RFID monitoring
systems under their EarthSearch Communication umbrella.
In the past month the Company announced agreements to develop access
control systems for oil refineries in the nation of Dubai, and
recently launched their oil pipeline monitoring system, which they
are currently market in the North African and Middle-East markets.
The stock may be consider a small cap developing company, but with
only 8 to 9 million shares in the float, and recent jump up in their
price, the stock seems posed to breakout to new highs for 2011. (see
chart)
Saudi Unrest Brewing
Now reports are stirring that a Saudi Facebook activist was shot
dead. Saudi activists alleged Wednesday that
state security shot dead a leading online activist, who was calling
for a 'Day of Rage' on March 11 in the oil-rich kingdom. Faisal
Ahmed Abdul-Ahadwas, 27, was believed to be one of the main
administrators of a Facebook group that is calling for protests
similar to that have swept North Africa and the Middle East.
If true, this could be a very worrisome event not just for security
of the all important Saudi oil fields, but for oil prices as a
whole. For traders more risk adverse, one way to play the wild swings in
oil prices is through ProShares
Ultra DJ-UBS Crude Oil (NYSE:UCO
). This ETF tracks the performance of crude oil price performance,
but at 2x the futures market. Thus if oil rises say 5% in any one
day
trading session, you could easily see UCO rise nearly 10% on that same
session.
Now, as with all ETF's, traders are cautioned that these can be
great leverage plays for experienced and active traders, but they
can also have very strong down side moves when the market moves in
the opposite direction of the ETF. Like most ETF's, options usually
trade against these trading vehicles, and thus protection strategies
can be implemented, but again, probably for the experienced and
active traders only.
On a longer-term trend, the TRIX is
indicating a bullish cross over into an upward trend, and oil historically
has upward pressure going into early summer peak driving season. (see
chart)
Airline Sector
Another way to play high oil prices is potentially being short the
airlines, such as with Claymore/NYSE
Arca Airline (ETF) (NYSE:FAA
). With nearly 20% to 40% of airline costs connected to fuel
prices, the airline industry is one of the most sensitive industry
and means to play wild swings in the oil market. (see
chart)
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Contact:
Wall Street Newscast
Email: info@wallstreetnewscast.com
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Safe
Harbor Statements:
This
research report includes statements that may constitute
forward-looking statements made pursuant to the safe harbor
provisions of the U.S. Private Securities Litigation Reform Act of
1995. Although the Company believes that the expectations
reflected in such forward-looking statements are based on
reasonable assumptions, such statements are subject to risks and
uncertainties that could cause actual results to differ materially
from those projected.
Disclaimer:
This is NOT a solicitation to Buy or Sell any security, but rather
is for informational purposes only. Content contained herein
includes facts, views, opinions and recommendations of individuals
and organizations deemed of interest. Wall Street Newscast ("WSNC")
does not guarantee the accuracy, completeness or timeliness of, or
otherwise endorse these views, opinions or recommendations, or
give investment advice. WSNC, its affiliates, or directors, may or
may not hold a position in the above security from time to time,
and investors are encourage to consider this as a possible
conflict of interest when reviewing this information. In
Compliance with SEC Rule 17B Wall Street Newscast was
compensated one hundred thousand shares from ECDC, and four
hundred twenty dollars for ongoing research and media coverage. WSNC may hold a position
in above security from time to time, and
thus should be considered a possible conflict of interest when
reviewing this report and information. These investments may
involve a high degree of risk, thus investors are highly
encouraged to consult with a financial advisor before any and all
investments.
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