October 12, 2010
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Hercules Offshore (Nasdaq: HERO ) shares jumped 10% in intraday trading on news that the Obama administration will lift the deepwater drilling ban.
So what: This is welcome news for drillers waiting for clarification on the ban. The news comes a month earlier than expected and has given drilling sector shares a boost.
Now what: Permitting may still take some time, but this is no doubt positive news for drilling companies. With the fog of regulation becoming clearer, it may be time to jump back into the drilling space. With Hercules down 50% in the past year, this could be just the news the company needs to get its stock back on track.
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