The stock of this offshore drilling contractor is showing weakness. Sell.
Atwood Oceanics (ATW)
from Positive Patterns Updated from Issue 705, October 19, 2011
Atwood Oceanics (ATW)—even with the recent drop—has still almost doubled since we bought it. The action is puzzling and disappointing, and I can’t understand the weakness. And that is one of the problems. When you own a weak stock and you do not know why, it usually means you (and me) are ‘missing-something’. And the lessons I have learned in this business is that that most often means you should sell the stock, and that is just what we will do—I recommend you sell this one.
I like the stock, but that is not the point. The point is, they are not getting the job done. As a portfolio manager your job is to weed out the losers and keep the winners as long as reasonably possible, take losing money (dead money) and put it where it will work. Saying it is simple, but ‘living it’—well, that’s another thing, as we all know. SELL.
Bob Howard, Positive Patterns, P.O. Box 310, Turners, MO 65765, 417-887-4486, February 3, 2014