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.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV