Investopedia: This HERO's Tale Unfortunately Common

Shares of offshore driller and liftboat operator Hercules Offshore (Nasdaq:HERO) took a beating on news that the company was under investigation by the U.S. government for possible violations of the Foreign Corrupt Practices Act. While history suggests that the actual punishments for the company (if it is in fact proven guilty) will not be crippling, the issue represents a distraction for management, a black hole for company resources that will now be directed towards legal matters and a significant embarrassment in a world that seems increasingly concerned about company conduct. 


What HERO's tale highlights, though, is just how common this issue is among companies great and small in a variety of industries. It also raises a dilemma for investors - should companies toe a high moral line, even if their competitors do not (and lose business), or should companies be allowed to act according to the notion of, "When in Rome ..."?

Few Details at This Point
At this point, it is impossible to say what specific allegations are in play against Hercules Offshore, to say nothing of whether the company is actually guilty. The company does operate in overseas markets like Saudi Arabia, Malaysia, India, Mexico and Nigeria - and Nigeria in particular has long been a hotbed of corruption, especially so in the energy and energy services sectors. 



Please continue by clicking the link:
http://stocks.investopedia.com/stock-analysis/2011/This-HEROs-Tale-Unfortunately-Common-HERO-IBM-TSN-HAL-RIG0411.aspx

All Clear In Energy Services?

Here is the latest article of mine on Investopedia. I should note that there was a bit of a holdup in the editing process, so this may read as slightly dated. The basic themes in the piece are still very much relevant and timely, though, so I hope you find it interesting.

http://stocks.investopedia.com/stock-analysis/2010/All-Clear-In-Energy-Services-SLB-DO-ESV-HAL-WFT0428.aspx

The last few quarters have not been the easiest for energy services sector, as troubles in Mexico, lower activity in the Gulf, weather difficulties, and project delays have all led to lower demand and lower prices. Still, it was not as though the sector closed up shop, as many U.S. natural gas shale play are economical below the $4 natural gas price level.

On a more positive note, it looks like the operating conditions may be about to turn. The earnings and commentary we have seen from the past week was supportive, and should give fundamentally-inclined investors a bit more evidence that the turn in the business is real. 

For the rest of the article: 
  http://stocks.investopedia.com/stock-analysis/2010/All-Clear-In-Energy-Services-SLB-DO-ESV-HAL-WFT0428.aspx

If You Can't Beat 'Em, Buy 'Em

Here is today's piece from Investopedia.
http://stocks.investopedia.com/stock-analysis/2010/If-You-Cant-Beat-Em-Buy-Em-XOM-XTO-HAL-RIG-UPL0415.aspx

Interesting coincidence that the APA-ME deal was announced this morning as well, given the theme in this piece.

Although a couple of deals does not necessarily make a trend, investors should get ready for a wave of M&A in the energy sector. We saw the Exxon Mobil (NYSE:XOM) - XTO Energy (NYSE:XTO) deal a few months ago, the deal between Arena Resources (NYSE:ARD) and SandRidge Energy (NYSE:SD)about a week ago and now the announced transaction between Haliburton (NYSE:HAL) and Boots & Coots (AMEX:WEL).

I believe these are just the first moves in a larger trend. With the credit and equity markets a little closer to normal, rising energy prices and increasing pressures on large energy company executives to "do something," merger and acquisition activity is going to look like an increasingly attractive option to many CEOs. 

The rest of the story at: 
http://stocks.investopedia.com/stock-analysis/2010/If-You-Cant-Beat-Em-Buy-Em-XOM-XTO-HAL-RIG-UPL0415.aspx