CCs 5A

Looking for stocks whose Ret "A">5>Premium@strike>3>Ret@ITM

OTM: FCX,ANR,DRYS,CLF,FSLR,LEH,SPWR,

News

1. Lehmen brothers to raise US$3-4 billion. Needs to deleverage. Markets guessing they will report a bad quarter on June 16. Stock price took quite a hit after rising last week.
2. China's Yanzhou raises 2008 coal export price. Likely buffering for their winter ahead. Could bode well for ANR, FDG.
3. S&P cuts ratings on MER, LEH and MS.

Lehman upgrades of Oil & Drilling

Lehman raises their target multiples for oil service and drilling stocks, reflecting a strong recovery in 2008 and 2009 for N. American natural gas drilling and substantial growth internationally over the next few years. Firm is raising their target multiples for oil service and drilling stocks. Lehman is raising their tgts on

BHI to $110 from $94, BJS to $41 from $33,

BRS to $62 from $58, CAM to $67 from $54,

DO to $161 from $158, DRC to $50 from $44,

DRQ to $50 from $44, ESV to $78 from $71,

GLBL to $21 from $23, GW ti $9 from $7.50,

HAL to $68 from $58, HP to $70 from $65,

HERO TO $44 from $32, HOS to $60 from $55,

NBR to $51 from $45, NOV to $100 from $79,

NE to $75 from $71, OII to $98 from $79,

PTEN to $39 from $34, RDC to $53 from $47,

SLB to $142 from $120, SII to $91 from $81,

SPN to $66 from $53, TDW to $85 from $75,

RIG to $192 from $180, WFT to $121 from $98,

WR to $26 from $25.