Profiteering from Disaster

Profiteering from disaster RIG Christopher Kellermeyer University of Redlands Figure [ 1 ]: http://www.mcclatchydc.com/2010/05/21/94649/remembering- unintelligible irrigate-horizons.html Profiteering from mishap RIG Around 10:00 PM on Tuesday, April 20, 2010, virtually 52 miles off of Louisianas tip, Transocean Atlantics crypticalwater horizon had an explosion. The incident left seventeen maritime workers wound and gasified eleven. In addition to the casualties, 42,000 gallons of anoint per day began spilling into the disconnection 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 facial expressionlined and relocated. With undeniable lawsuits, fines, and sidelined fleets, Transocean went from universe in deep water to deep crap. However, record tells us when on that point is disaster there is unpredictability; and, this speedy gap creates opportunity for profiteering. Deep water drilling companies experienced rapid stock declines over the next devil 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 call for administer volume. In months prior to the di saster, the stock price and trade volume wer! e mainly stagnant; however, volume increased dramatically as those invested in the company relinquished their positions to attempt to bailout forwards the crash. For anyone with a modicum to invest, there is money to be made during much(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, parliamentary procedure it on our website: OrderCustomPaper.com

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