D - GIFI - it closed above its previous high (thus resistence) on yesterday mo-mo. It also beat earning estimate by 3 cents after close. However, it also warns of eroding backlog going forward. If the mo-mo continues today, GIFI can run till its next resistence at 20 1/2. GIFI also closed above its upper BB so it has to come down sometimes today. I will employ the wait and see approach. If we are in a more rational time, I would short it at open. RIG is the leader for now. Also watch FGII. Read below - it's oil price, stupid.
''We had a great third quarter and are quite pleased with our results over the first nine months of the year,'' said Kerry Chauvin, Gulf Island's Chief Executive Officer. ''Despite our Company's excellent performance, however, the downturn in our industry brought on by continued low oil prices and a downturn in natural gas prices as well, will impact our ability to maintain these high levels of performance beyond year end. The dollar value of projects available in the market is significantly below last year's levels and our backlog is being similarly eroded. Competition for available projects has become more intense and future margins will likely be diminished. Cost reduction measures will be undertaken as appropriate to meet these conditions. In the longer term, demand for our services will largely depend upon prices for oil and gas, which are difficult to predict. At some point however, it is expected that these should recover as supplies are reduced and our customers are forced to replace them.'' |
