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 Global Industries
So what: Buyers have flooded the market today buying Global Industries' value and exposure to the oil industry. After shares were crushed in August following a weak earnings report, investors have begun moving back into Global Industries, and today's 4% jump in the price of oil gives hope that the company's services will be back in demand again.
Now what: Shares are trading well below book value, but management has actually been destroying shareholder value over the last few quarters -- not a good sign for value investors. The company's results may be in for an upswing, but I think the prospects are a little too risky to jump in now. Traders buying today are buying based on rumors and oil price charts, something Foolish investors avoid doing.
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