JJC:    What do I think is still working in this market?... Oil and gas... And everything connected to finding it, drilling for it, getting it out of the ground...

Even after the close tonight, Cramer-fave Chesapeake (CHK)... how many times have I told you that Aubrey McClennan (CEO), the guy who kept buying stock, is the best there is...

CHK has some great news about finds in the Haynesville Shale and a transaction that is going to move this whole group up again tomorrow... There is drilling madness in this country... That's why, in response to popular demand, because you guys loved our series on the wildcats... How much did you love them?... Well obviously... The companies that drill where no man has never drilled before and you I mean look at these, they're pretty good...

This CHK keeps upgrading its reserves here... And offshore cleaner drilling plays, which I know you like too... I'm going to give you one more, okay?...

By the way, the wildcatters, really making you some chow, the S&P is not doing nearly as well as that group, it's not bad... The clean offshore drilling plays are up an average of .9%, but I recommended them last week, let's give them a shot, that was a terrible week... So I think you have to bide your time, but again, I think the group will be because of this CHK announcement after the close with plains... It's really, really big... S&P is just doing terribly, this group has been thoroughly thrashing the market...

Our next Mad Money offshore play, it's one you never heard of...

It's called Bristow Group, Inc. (BRS).

The BRS is a follow up on all of the offshore drilling stocks we talked about last week, when I gave you a bunch of stocks that make offshore drilling safer and more profitable... By the way, my senator from New Jersey, Menendez, came out and said everything we said is basically untrue... He didn't reference our show, that would be asking for too much, he probably has wake apnea, another guy who has wake apnea... You know he was basically talking about where we were back in 1969, he's talking about Santa Barbara... Wake up and smell the fact that the crude isn't, isn't polluting our beaches, and it's just a high real estate costs that are coming down. BRS offers another service that helps offshore drillers... Helicopters... Last week I recommended Hornbeck Offshore Services Inc. (HOS), for all you homegamers, and for all you Bonanza fans... Now, just so I can personally, little self revelation... I was a Parnell Roberts fan, remember Adam?... No that could have been because of another show (i.e., M*A*S*H) that was a classic, Trapper John MD, the original template for Mad Money...

Anyway, HOS is a company that makes the boats that are pretty much the only way to supply offshore rigs with the material they need. BRS provides one the best way to provide rigs with the manpower they need, by flying them in on helicopters, or choppers, as I call them, because I radiate cool. Oil service helicopters are a great business their day rates, Wall Street jibberish for how much they cost to rent per day are less cyclical than those of the rig... Although, right now, the cyclicality of the rig day rates is a good thing, it's why we like Transocean Inc. (RIG) so much. Helicopter contracts are on a monthly retainer so BRS gets the same amount of money regardless of how often its helicopter is used... And customers usually pay for fuel cost overruns, something that is especially important in this environment. Once you build a platform, you always need helicopters to bring in personnel. And this is one of those things where they're on for a while, off for a while... It's like a firehouse. And as oil exploration moves into deep water areas that are farther from the coast the demand for the larger and medium sized helicopters BRS makes should increase even if Congress doesn't let us drill offshore in the US, every other country in the world with offshore oil is drilling like mad... And that has to increase the demand for helicopters to put people on the platforms where they're needed. We're the only ones, but we do tell every other country they should drill a lot. Not us, we like our beaches pristine... Like they wouldn't be, with the technology we have in export. We like BRS because the market for its medium and large sized choppers is a happy duopoly... BRS shares it with CHC, that was recently taken private, and the barriers to entry of how you are going to just come up with a fleet of big helicopters are high. Duopolies have what's known in economics classes as pricing power, which is a really nice way to say that they can gouge their customers at will. BRS owns and operates 548 helicopters with 25 on order. It gets 77% of its sales from the rest of the world... And sees $1.5 billion in business going forward, that's huge for a $1.1 billion company. A lot of it is coming from Brazil, Petroleo Brasileiro (PBR), drilling like mad, they want every single rig they can get... Southeast Asia and western Africa...

Oh, by the way, all of those countries that actually drill offshore, we tell them that they should do that, not us. Best of all, there's a shortage of helicopters serving the offshore industry... I believe we're about 400 helicopters shy of what we need... And because all of the smaller choppers get sold out... Even better, the supply of large helicopters has been increasingly constrained because of the war in Iraq... It's taking up a lot of the newer medium to large choppers coming out of factories, which means less new choppers going to oil and gas, which should mean more money for companies like BRS, that own the existing, very in demand helicopters that service the industry. There are only three companies that make these helicopters and their order books are locked up for the next three years... Visibility, that should make BRS about as close to invulnerable from competition as you can be, and locking the tight supply of helicopters in place for the next three years, which should be great for BRS's price gauging power...

We got a chopper shortage brewing and BRS is the way to play it. Now, BRS's stock is just emerging from a capital overhang... It blew up when the company announced it needed to raise capital in order to buy an additional 19 choppers, the offering a private placement with Taladonial investments priced at $46.87 on June 19th, just a couple weeks ago, the stock is now above that price at $48.81, but that kept it down, that's the opportunity. If you look at the valuation, see what CHC helicopters got when it was taken private, then apply it to BRS, $68 stock masquerading as a $48 stock. I say stop the masquerade... That's 40% potential upside from this price. I would not be at all surprised if it gets there given how hot this segment is, and it's getting hotter, not colder... Don't pay up for this stock... Tomorrow we will see a big inventory build, I believe, in the domestic oil numbers, and the oil and gas stocks will get hammered for there, so we've been buying them every time we see this pattern... So that's a much better time to be buying BRS... So keep your paddle dry, watch the number at 10:30, everybody will be screaming and yelling, full sound and fury signifying nothing...

Oil will go down in prices will send the stock down and time and time again, it is proven that the ultimate direction of oil can not be predicted by this silly 10:30 number, but it is a great time to buy BRS.

.  .  .  .  .