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 offshore driller Pride International
So what: Fellow driller Ensco
Now what: After the jump in Pride's stock and the dip in Ensco's, there's not much more room for Pride's shares to climb to reach the deal price. That doesn't necessarily mean that Pride shareholders should take their gains and ride off into the sunset, though. The combined company will throw around considerable weight in the industry, and Ensco sees at least $50 million in annual expense savings from the deal. That could make it worth Pride shareholders' while to hang onto the Ensco shares coming their way when the deal closes.
The Fool owns shares of Ensco and Transocean.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
Fool contributor Matt Koppenheffer does not own shares of any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or on his RSS feed. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.