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 and natural gas equipment and services provider Exterran Holdings
So what: Exterran announced this morning that it had won a five-year contract from Pemex to provide gas conditioning, treating, and compression services in three natural gas facilities in Veracruz, Mexico. This deal represents Exterran's largest deal by capacity in Mexico and is expected to commence in the second quarter of 2012.
Now what: Today's contract is a step in the right direction for a beaten-down stock. Unfortunately for Exterran, it needs considerably more than just one contract to right its ship. Projections are currently calling for Exterran to be running deep in the red in 2012 and it would practically take a miracle to reverse that. I'd rather stick with profitable plays in the oil and gas sector than be suckered into the one-day pop we're seeing today.
Craving more input? Start by adding Exterran Holdings to your free and personalized watchlist so you can keep track of the latest news with the company.
Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.