Profiteering from Disaster

Profiteering from disaster RIG Christopher Kellermeyer University of Redlands Figure [ 1 ]: http://www.mcclatchydc.com/2010/05/21/94649/remembering- duncish irrigate-horizons.html Profiteering from incident RIG Around 10:00 PM on Tuesday, April 20, 2010, roughly 52 miles off of Louisianas tip, Transocean Atlantics involvedwater horizon had an explosion. The incident left seventeen maritime workers hurt and gasified eleven. In addition to the casualties, 42,000 gallons of oil colour per day began spilling into the disconnectedness 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 cut companies were investigated. Profits for Transocean and competitors immediately sank as fleets were stancelined and relocated. With essential lawsuits, fines, and sidelined fleets, Transocean went from universe in deep wa ter to deep crap. However, score 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 both 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 augur mess volume. In months prior to the disaster, the stock price and trade volume were mainly stagnant; however, volume increased dramatically as th ose invested in the company relinquished the! ir positions to attempt to bailout originally the crash. For anyone with a modicum to invest, there is money to be made during such(prenominal) 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, regularize it on our website: OrderEssay.net

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