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 oil rig service provider Key Energy Services
So what: With oil popping 5.5% today it shouldn’t be any surprise that companies related to oil are skyrocketing. Higher oil prices make oil drilling more economically feasible and should lead to increased revenue for Key Energy Services in the long term.
Now what: I wouldn’t read too much into the move today. Shares were downgraded last week by Global Hunter Securities and nothing has fundamentally changed about the company today. A move based on oil prices is nice, but shares may fall again tomorrow; I would much rather see solid earnings driving the share price.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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