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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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New Research Opinions

Submit a Press Release

Two Small Mobile App Plays to Watch (CEHC, APCX)
Calypte Reports Positive Results, EarthSearch New Purchase Order (CBMC, ECDC)
Iraq Oil Refinery Attack Shows Need for EarthSearch Systems
Reverse Merger Plays ELRA, DEGH, BDLF
Elray Resources (ELRA) Mergers with Online Gaming Company
How to Play the Middle-East Crisis, and High Oil Prices (UCO, FAA, ECDC)
Cannabis Science Cancer Results, Cephas Signs New MMA Fighter (CBIS, CEHC, ECDC)
EarthSearch Chart Breakout, O2 Secure Wireless Gaps Open (ECDC, OTOW)
Home Energy Savings Takes Off in Mid-Day Trading HESV, ECDC, EVCA
Chinese Plays to Watch - CLGZ, WWEI, CNUV
Cephas Holding Developing Social Network for Modeling Industry
TSAS Holding up Well After Monday Open - ECDC, CEHC, WWEI
Four Stocks to Watch TSAS, ECDC, EVCA, CEHC
Earthsearch to Take on LoJack with Anti-Theft GPS Vehicle Product
Earthsearch (ECDC) Gets Purchase Order for Dubai Projects
Cephas Holding to Sign New MMA Fighter for Mobile App
Earthsearch (ECDC) Offers Solutions to Growing Cargo Theft Problem
Mubarak's Son Flees Egypt, Police Fallback from Suez

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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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This website includes statements that may constitute forward-looking statements made pursuant to the safe harbor
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