Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What:Energy infrastructure and pipeline construction companyWillbros Group Incstock is getting slaughtered today, down almost 57% before noon. Earlier in trading, the stock was downalmost 75%:
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So what: In an SEC filing yesterday,Willbros Group said that it would be unable to file its annual report on time. Here's why, from the filing(emphasis mine):
Now what:Plain and simple, the company is at serious risk of going bankrupt, unless its creditors are willing to make concessions. At this stage, it's almost impossible to predict what will happen, and frankly this is exactly the kind of unexpected, unforeseen, event that can wipe investors out. If you hold shares of Willbros Group, all I can say is I hope you're diversified and it isn't a large part of your portfolio today.
If you're looking to buy, I encourage you to look elsewhere. Buying shares today is absolutely no different than betting on a coin-toss. Instead of making a guess, invest in a solid company like the one discussed in the report linked below.
The article Why Willbros Group Inc (WG) Stock Blasted Down 57% Today originally appeared on Fool.com.
Jason Hall has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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