Global Industries Shares Popped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Global Industries (NAS: GLBL) are trading 16% higher today on unusually high volume and a spike in oil.
So what: Buyers have flooded the market today buying Global Industries' value and exposure to the oil industry. After shares were crushed in August following a weak earnings report, investors have begun moving back into Global Industries, and today's 4% jump in the price of oil gives hope that the company's services will be back in demand again.
Now what: Shares are trading well below book value, but management has actually been destroying shareholder value over the last few quarters, not a good sign for value investors. The company's results may be in for an upswing, but I think the prospects are a little too risky to jump in now. Traders buying today are buying rumors and based on charts, something Foolish investors avoid doing.
Interested in more info on Global Industries? Add it to your watchlist.
At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.