Thursday, October 31, 2013

Scary Stocks

Happy Halloween everybody.  Just a couple of rapid fire notes.

First, ABC ("easy as 1,2,3") reported earnings this morning. So far as I can tell, they were solid.  Good news, hooray!  FLR reports tonight after the close, but before trick or treating starts.

I saw where GS downgraded RIG to a "sell". That is pretty strong.  They think macro demand for off shore drilling is weak and that RIG faces significant contract renewal risk.  They also comment that RIG has a relatively old fleet and will need to start reinvesting.  These all strike me as relevant comments. I am not going to run out and sell my RIG tomorrow, but will be watching with a closer eye and may sell some at the margins.

QCOR crashed over 10% yesterday when the mentioned the dreaded phrase "SEC Investigation". It is ironic, that was the reason I sold QCOR in the low 20s in October 2012.  Scary stuff.

WTW appears to not be worth the wait, they are down 17% this morning with their dividend slimmed down to zero.

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