Mon, Apr 21, 2014, 5:04 AM EDT - U.S. Markets open in 4 hrs 26 mins

Recent

% | $
Quotes you view appear here for quick access.

Hercules Offshore, Inc. (HERO) Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • palmoscopy palmoscopy Apr 10, 2011 2:08 PM Flag

    You can't ignore this!

    BEACON EQUITY RESEARCH
    Hercules Has Fallen: is it Time to Buy HERO?
    Posted by Dave Goodboy on Apr 08, 2011

    Shallow water driller Hercules Offshore ( Nasdaq: HERO) has been knocked off of its multi-month uptrend by international bribe allegations. Shares were stopped dead at $7 per share when rumors of the bribery investigation started swirling about the financial community. The official news hit the wire on Thursday when the company admitted that it was being investigated by Federal law enforcement authorities. This investigation is on the heels of seven drilling companies agreeing to pay $236 million to settle foreign official bribe claims in November. In addition, the oil and gas industry operates in nations believed to be, by U.S. officials, among the most corrupt in the world. This has resulted in the U.S. ramping up anti-bribery enforcement leading to the Hercules investigation. The company has operations in the fraud capital of Nigeria, among other shaky economies, creating even more suspicion among overzealous officials.

    Let’s take a closer look at Hercules. Thrust into the spotlight as being a driller in the wake of the Gulf oil spill, the company took advantage of the situation by buying out Seahawk Drilling at a substantially reduced price. The Houston, Texas-based driller together with its subsidiaries, provides shallow-water drilling and marine services to the oil and natural gas exploration and production industry in the U.S. Gulf of Mexico and internationally. The company serves integrated energy companies, independent oil and natural gas operators and national oil companies. As of February 24, 2010, it owned a fleet of 30 jackup rigs, 17 barge rigs, three submersible rigs, one platform rig, a fleet of marine support vessels, and 60 liftboat vessels, as well as owned four retired jackup rigs and 10 retired inland barges located in the U.S. Gulf of Mexico.

    Looking at the history of this type of bribery allegations, it is very unlikely that they will damage the company financially. This pull back creates an opportunity for savvy traders to obtain shares at a discount. However, it’s important to keep in mind that anything can happen when this can of worms is opened, no matter how unlikely. Caution is warranted at all times. Good trading!

 
HERO
4.41+0.08(+1.85%)Apr 17 4:00 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.
AstraZeneca PLC
NYSEThu, Apr 17, 2014 4:00 PM EDT
Snap-on Inc.
NYSEThu, Apr 17, 2014 4:01 PM EDT