Profiteering from Disaster

Profiteering from disaster RIG Christopher Kellermeyer University of Redlands Figure [ 1 ]: http://www.mcclatchydc.com/2010/05/21/94649/remembering- sound irrigate-horizons.html Profiteering from catastrophe RIG Around 10:00 PM on Tuesday, April 20, 2010, most 52 miles off of Louisianas tip, Transocean Atlantics mysticwater horizon had an explosion. The incident left seventeen maritime workers wound and gasified eleven. In addition to the casualties, 42,000 gallons of fossil oil per day began spilling into the disjuncture of Mexico. Humanitarians and environmentalists became outraged, lawyers began to salivate, and the Obama judiciary issued a six month moratorium on oil bore in the Gulf as safety conditions of deep water drill companies were investigated. Profits for Transocean and competitors immediately sank as fleets were nervelined and relocated. With unavoidable lawsuits, fines, and sidelined fleets, Transocean went from universe in deep water t o deep crap. However, tale tells us when on that point is disaster there is irritability; and, this speedy gap creates opportunity for profiteering. Deep water drilling companies experienced rapid stock declines over the next cardinal months. Transocean (RIG) shares bombed from over $90 per share to slightly over $40 per share (see graph below).

Figure [ 2 ]: finance.yahoo.com The chart shows us the decline in the stock price preceding the Deep Water opinion disaster. At the bottom of the chart, the vertical lines quest foxiness volume. In months prior to the disaster, the stock price and trad e volume were mainly stagnant; however, vol! ume increased dramatically as those invested in the company relinquished their positions to attempt to bailout out front the crash. For anyone with a modicum to invest, there is money to be made during much(prenominal) disasters and during the recovery level (now); still, before looking into the profit side of this particular situation, it is outgo to familiarize oneself with a companys history,...If you want to shake up a full essay, ensnare it on our website: OrderCustomPaper.com

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