Profiteering from Disaster

Profiteering from disaster RIG Christopher Kellermeyer University of Redlands Figure [ 1 ]: http://www.mcclatchydc.com/2010/05/21/94649/remembering- compact irrigate-horizons.html Profiteering from fortuity RIG Around 10:00 PM on Tuesday, April 20, 2010, well-nigh 52 miles off of Louisianas tip, Transocean Atlantics plentifulwater horizon had an explosion. The incident left seventeen maritime workers wound and gasified eleven. In addition to the casualties, 42,000 gallons of embrocate per day began spilling into the disjunction of Mexico. Humanitarians and environmentalists became outraged, lawyers began to salivate, and the Obama judiciary issued a six month moratorium on oil bore in the Gulf as safety conditions of deep water drilling companies were investigated. Profits for Transocean and competitors immediately sank as fleets were steadlined and relocated. With essential lawsuits, fines, and sidelined fleets, Transocean went from universe in deep w ater to deep crap. However, account statement tells us when on that point is disaster there is excitableness; and, this speedy gap creates opportunity for profiteering. Deep water drilling companies experienced rapid stock declines over the next ii months. Transocean (RIG) shares bombed from over $90 per share to slightly over $40 per share (see graph below).

Figure [ 2 ]: finance.yahoo.com The chart shows us the decline in the stock price preceding the Deep Water opinion disaster. At the bottom of the chart, the vertical lines presage exchange volume. In months prior to the disaster, the stoc k price and trade volume were mainly stagna! nt; however, volume increased dramatically as those invested in the company relinquished their positions to attempt to bailout in the first place the crash. For anyone with a modicum to invest, there is money to be made during such disasters and during the recovery level (now); still, before looking into the profit side of this particular situation, it is outgo to familiarize oneself with a companys history,...If you want to shake up a full essay, revision it on our website: OrderCustomPaper.com

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