Therefore, the EUR/USD sold off in the Europe trading session. Currently, the EUR/USD is trading higher at the $1.34 level. In my opinion, only a margin hike or Central Bank Action will slow down this Brent/Crude Train. Keep an eye out for the French Elections coming in early April 2012. Volatility remains high in the currency and energy markets. 10 YR Treasury is at $1.91 as the shift from bonds to risk assets continue.

Unusual Option Activity:

· We have seen huge Call buying in OTM RIG Calls. Also, when AAPL was down $6 this morning we observed aggressive May $540 Call buyers .
· When DNDN was trading at $13.52, someone sold 3,900 Mar 15 Calls for $.56. DNDN is currently trading at 12$,
· A Customer bought 2,000 LPX April 8 Calls for $.6. LPX stock popped and the calls are currently worth $.70.

By: Greg Zimny

•Price Target: 50 DMA- $11.16 200 DMA $9.22. In October 2011, LNG hit a low of $4 . Today, LNG hit a fresh 52 wk high of $15.7 LNG has been on a rage this year. On January 1st, 2012 LNG was trading in the low $9’s

MAIN QUESTIONS REGARDING FUTURE OF LNG: How will they restructure their current debt?? This has to be done ahead of financing for the liquefaction project?
Will they sell even more shares of stock? The number of outstanding shares has increased from 51.0m in 2009 to 129.6m today. This doesn’t impact their net loss, but it makes the loss per share look smaller since a larger number of shareholders are dividing up the losses.
Also, Blackstone Group makes a huge $2B bet on LNG. Does this mean they have financing for LNG plant? would be HUGE. Proceeds will be used toward developing the liquefaction project at Sabine Pass. LNG expects debt financing to occur Q1 2012.

How will they restructure their current debt ahead of financing for the liquefaction project? This will impact their interest expenses.
– Will they sell even more shares of stock? The number of outstanding shares has increased from 51.0m in 2009 to 129.6m today. This doesn’t impact their net loss, but it makes the loss per share look smaller since a larger number of shareholders are dividing up the losses.

PCLN,CTB, and BRK.A report earnings today.
PCLN: Quarterly Earnings and Estimates (QE4) of $5.02. Quarterly Earnings and Revenue Estimates of $968 million. In my estimation, Priceline will beat analyst expectations for EPS and Revenue, but will probably lower its guidance. Furthermore, not one insider bought new shares in PCLN this year. That speaks volumes!

CTB: Quarterly Earnings and Estimates (QE4) of $.39 and Quarterly Revenue (QE4) of $1billion. In my opinion, the quarter will be a disappointment mainly due to weather, and consumers lack of replacement tire purchase. Also, announcements regarding labor disputes are expected during the CC.
By: Greg Zimny