Seeking Alpha, 04/18/2012
The BP (BP) spill has sure put traders and investors on edge. While a number of leaking rigs, fires, and other events, have occurred since the fateful spill two years ago, the spill off the coast of Brazil is an actual event that has moved the markets. The fact that Transocean (RIG) was again party to a spill that involves a large governmental lawsuit right at the time it seems near a settlement with BP seems to have spooked traders and investors as well.
Let’s look at the share price reaction in Transocean’s shares since the news was announced shortly after shares reached their one-year high, following the announcement that Transocean’s deepest water rigs had secured a new and impressive $714,000 a day rate.