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.