Why Cobalt International's Shares Jumped
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 Cobalt International Energy (NYS: CIE) jumped 18% today after reporting a major oil discovery.
So what: The company said it hit a "significant" oil discovery in its North Platte prospect in the Gulf of Mexico. Details are sparse at this point, but the company said early data is "in line with predrill estimates of net pay".
Now what: This is a huge development for Cobalt, which also discovered deepwater oil off the coast of Angola. Total (NYS: TOT) has a 40% working interest in this prospect, but Cobalt owns the rest, and this will hopefully bring the company closer to earning significant revenue. The stock is still a risk until the company begins producing consistent earnings, but this discovery, coupled with Angola, gives the stock huge upside going forward.
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The article Why Cobalt International's Shares Jumped originally appeared on Fool.com.Fool contributor Travis Hoium has no positions in the stocks mentioned above. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDraw. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Total. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.