January 3, 2012
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: Shares of RPC (NYSE: RES ) jumped 13% today as the price of oil went through the roof.
So what: Tensions in Iran and hopes that the U.S. economy may be strengthening have sent the black gold higher today. The other sector RPC serves, natural gas, was barely changed today.
Now what: Shares of RPC have been following the wild movement of oil recently, increasing the stock's volatility. RPC will obviously benefit from higher oil prices, but I wouldn't be buying on up days like today. Iran isn't likely to follow through on threats, and if it does there are more direct ways to profit from the rising price of oil and resulting economic fallout.
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