Selling Is Over for GlobalSantaFe
This column was originally published on RealMoney on April 2 at 3:09 p.m. EDT. It's being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney, please click here.
That darned seller of GlobalSantaFe (GSF) is finished, and now the stock is finally ramping. We always talk about window-dressing, about marking up, but we should speak more about the incredibly bizarre desire of some funds to get the dumping of certain stocks done by the end of the quarter.
That's what I saw with GlobalSantaFe last week. Someone banged this stock down from $64 to $61 without much thinking at all. It was just mindless and horrible, despite the company saying, while it was happening, that business is booming and the company would be willing to talk merger.
Last week, I mentioned this stock on Stop Trading and how I would wait to buy it until the last day of the quarter because the seller was so motivated. Bingo, that's what happened.I think this stock is headed right back to where it was a week ago and then some: $65 to $66. I'd buy it aggressively here, particularly with day rates continuing to climb, as is clear from the Transocean (RIG) fact sheet sent out today.
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