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 oil-field service and equipment provider RPC (NYS: RES) jumped as much as 11% in early trading today only to see shares trade flat by midday.
So what: There were rumors swirling that Patterson-UTI (NAS: PTEN) was going to buy RPC, but the market dismissed them as the trading day went on. Analyst Neal Dingmann at Suntrust Robinson Humphrey was quoted as saying he'd heard rumors that Patterson, Superior Energy (NYS: SPN) , and others would buy RPC.
Now what: This rumor has already been put to rest for today, but this may be a good time to reevaluate RPC's shares. The company's unconventional oil drilling business is its current driver and may be attractive to potential buyers or long-term investors right now. Unconventional oil plays are hot in the U.S. and RPC's shares are trading at just 7 times forward earnings, a great price in this market.
At the time thisarticle 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.