Tuesday, July 15, 2008

Keeping a company focus

The broader markets were down sharply at the open, but are now rebounding on the news that oil prices have fallen sharply in the last hour. I'm trying to look past these violent swings, and just focus on my particular companies. To that end, there was a bit of news this morning, including another significant contract for Transocean (calls 6.9% of portfolio) from Petrobras. This contract totals approximately $3B for four rigs, and will further boost the backlog from 2010 onward. Also in the news is Avanex (4.0% of portfolio), which settled their dispute with 3S Photonics, a former subsidiary which caused problems for the company earlier this year. Terms were not disclosed, so I can't tell what financial impact it will have on Avanex.