MDR - Here's Why McDermott International Is Plunging Today
Shares of McDermott International (NYSE: MDR) fell 49% today before trading was halted. The company later released a short statement saying it had engaged with outside advisors, as it routinely does in the course of normal operations, to evaluate opportunities for the business. There's more to the story than that.
According to The Wall Street Journal, the offshore oil-and-gas engineering and construction company is working with turnaround consulting experts AlixPartners. The move makes sense considering McDermott International has been struggling to deliver profitable operations in recent quarters. That said, turnaround strategies are often a little painful to implement and accompanied by a good deal of uncertainty, which is the worst thing that can happen to a stock.
As of 1:48 p.m. EDT, shares remained halted at a roughly 49% loss for the day.