McDermott International Shares Jumped: 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 McDermott International (NYS: MDR) surged 10% higher today after the company announced a huge new contract.
So what: The company's Australian subsidiary was awarded a contract for an Ichthys gas/condensate field project. The contract is for around $2 billion, the largest in company history.
Now what: McDermott has already started engineering work and is expecting to begin fabrication in 2013. This single contract is two-thirds of the company's total market cap and will provide work for years to come. I think this is a hugely bullish release and think this will be a catalyst to help push results and shares higher long term.
Interested in more info on McDermott? Add it to your watchlist byclicking here.
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.
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