John Clark

Special situations, contrarian, trading stress management
John Clark
Special situations, contrarian, trading stress management
Contributor since: 2009
And, quite often simply putting some space between an impulse and taking action can work wonders.
Yes, I too have gotten a great deal from Dr. Tharp's work. Thanks for mentioning him here.
You make some excellent points and from my perspective at least, Dr. Steenbarger has put together a resource book of lessons and exercises that speak effectively to them and does not advocate trying to control emotions. And, yes, there definitely are a number of ways to engage with the intrapersonal challenges of trading and investing that he does not cover.
Look at the SEC filings by the company to get pro forma data. The eaiest way to find them is through the Investor Relations page of the parent company's website.
You mean to say you don't think that these guys set this up knowing it would work out to such perfection? Your view probably makes a lot more sense that my looking at it in retrospect and thinking "wow! these guys were incredible."
True enough.
Whew! Like you said, there's lots to think about.
Yes, the rumors were flying last year about Petro China wanting to buy McDermott, but as noted then with Babcock & Wilcox providing the US Navy with nuclear fuel and McDermott managing the US Strategic Petroleum Reserve as written up here that wasn't destined to fly.
Will spinning off Babcock & Wilcox make that a more doable deal? I don't know. It could, but guessing who's going to get taken over has always seemed like buying a lottery ticket to me. Of course, if the company is a good bet with or without the take over, then that can just be icing on the cake.
Sounds like you think that they are both good companies in good businesses. I think so too. And, historically both parents and spin-offs tend to do better after a spin-off.
What should you do? The only thing I am sure of is that you should figure out where the odds are most in your favor given your own situation and investing psyche and go from there. Anyone who offers to sell you certainty is a charlatan. It just doesn't exist.
Write down your plan including your reasons, what will be signs that you were mistaken, and under what conditions you will take a profit. And then follow your plan. Let it play out.
Everyone talks about fear and greed in investing, but for me at least, the third big one is impatience. I've found that writing down my plan and then referring back to it when I start to freak out and just want to be relieved of the uncertainty (win lose or draw) keeps me out of trouble.
Also, follow the SEC filings on the spin-off. They will have to provide mountains of data to the SEC on everything imaginable about both companies. There are few situations in investing with as much information straight from the horse's mouth as in spin-offs. Use it to stay on track.
And that environment at sea for long periods of time is unforgiving to say the least.
So would it be reasonable to say that when nuclear came along as a source of heat, that they were already ahead of the pack on how to best turn it into energy via steam?
Thanks Jack. I did not know B&W's history and now my interest is up to learn more about it. I especially like hearing that "they are innovators & have a number of interesting products."
john