I saw the news this morning and wondered why the stock dropped big when it seemed to be a ruling supporting transocean's position. It would seem that the deserved beatdown for the horrible earning failure was already priced in. Can anyone with insight to todays price action chime in? Bashers and pumpers need not respond.
It had to do with this. Just another opportunity to buy imo.
Chevron, Transocean Say Brazil Well No Longer Leaking -CNBC
DOW JONES NEWSWIRES
Responding to online reports about an oil spill off Brazil, Chevron Corp. ( CVX) and Transocean Ltd. (RIG) said Tuesday that the well was no longer leaking, CNBC reported.
Chevron said that the well has ceased to leak, and that the company received permission from Brazil to cap it, CNBC said. Transocean said reports about the size of the leak were inaccurate and that the company was told that the well has been killed, according to CNBC.
It's about street confidence. Not all traders are well informed and many just want to trade the bounce. Mankind cannot live without oil and the world cannot get oil fast enough, look at oil is almost at $100 again. There is little doubt RIG is well positioned 2012 and beyond. Short term pain? Sure but my feeling is you can always make a buck here and tehre but you just end up giving it all back, to make REAL money, need to be long and strong on great stocks.