This post was just published on ZYX Buy Change Alert.
Offshore drilling sector has fallen completely out of favor as the oil prices have fallen. With success of on land fracking, economics of offshore drilling has changed. However the selloff in HERO is overdone. The trigger for today’s selloff is the fleet report from the company. The company is likely to idle two more rigs next week due to pronounced drop in demand.
The future of this company will depend on oil prices.
Lowering our target zone to $5.50 to $6.50.
The Plan
The plan is to add to the position during year end tax loss selling.
What To Do Now?
Those in the stock may continue to hold but not add as the year end tax loss selling is ahead.
Those not in the stock may wait for a signal on the Real Time Feed to initiate a position.
