Profiteering from Disaster

Profiteering from disaster RIG Christopher Kellermeyer University of Redlands Figure [ 1 ]: http://www.mcclatchydc.com/2010/05/21/94649/remembering- cryptic irrigate-horizons.html Profiteering from misadventure RIG Around 10:00 PM on Tuesday, April 20, 2010, close to 52 miles off of Louisianas tip, Transocean Atlantics of latewater horizon had an explosion. The incident left seventeen maritime workers injure and gasified eleven. In addition to the casualties, 42,000 gallons of crude 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 cut companies were investigated. Profits for Transocean and competitors immediately sank as fleets were positioninglined and relocated. With necessary lawsuits, fines, and sidelined fleets, Transocean went from universe in deep wat er to deep crap. However, narration tells us when on that point is disaster there is irritability; 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 hint sight volume. In months prior to the disaster, the stock price and tr ade volume were mainly stagnant; however, v! olume 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, ordain it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper