Agreed. I know there is some panic selling. Probably some shorts are using this as an opportunity to cover after the recent run up? I would love it if there are shorts piling on right now. They could be serious fuel for a run up if earnings are banging and the Discovery rig comes online with a good contract. I do wonder what this brings to the table for someone sitting on the other side working on that Discovery contract.
I don't think shorts piling up is anything good. As this is a small cap co in a high risk business enough convicted shorts can run it to the ground easily. The fire has certainly made situation much worse. Before the fire there was this statement from HERO
Experts from Wild Well Control Inc. were to assess the well site overnight and develop a plan to shut down the flow of gas, said Jim Noe, executive vice president of Hercules Offshore Inc, owner of the drilling rig where the blowout occurred.
Noe stressed that gas, not oil, was flowing from the well. He said it's an important distinction because gas wells in relatively shallow areas — this one was in 154 feet of water — sometimes tend to clog with sand, effectively snuffing themselves out. "That is a distinct possibility at this point," he said. "But until we have our Wild Well Control personnel on the rig, we won't know much more."
I hope that HERO's strategy is not to wait for sand clog!!!
It really is a shame as the co had really turned a corner. Now it's much more important to get the discovery rig under contract - which is a long time coming.
Honestly, I have never been caught in this position before. Rig will most likely be a total loss so insurance proceeds for the damage. No injuries or serious environmental damage reported so lawsuits will not be an issue. If the fire is put out soon, what is a realistic damage assessment to the stock price going forward?