Saturday, December 20, 2008

ESV Down 14%-Dec 18 (James F)

Thursday-December 18, 2008, Ensco was down roughly 14% on the day. The same day OPEC decided to cut production 2.2M barrels per/day in an effort to increase prices, but said they had no specific price target in mind. Although OPEC cut production, oil futures still continued to fall in price. Oil was down roughly 7% on the day. Traders felt that the cut in production was not enough and most energy names to trade down. I still maintain a hold recommendation on ESV, as I still believe oil is not staying at these price levels for long.

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