Showing posts with label TRMA. Show all posts
Showing posts with label TRMA. Show all posts

Wednesday, January 20, 2010

Update on the OII/TRMA pairs trade.

On Jan 11th, I mentioned opening a pairs trade going long OII and short TRMA. Today I got stopped out of OII for a loss of slightly less than 9.5% and I covered my TRMA position for a little bit better than a 16% gain, so I made about 6.5% on this pairs trade. Not a home run, but better than a sharp stick in the eye.

More details on the Short Screen message boards.

Monday, January 11, 2010

Altman Z"-score pairs trade: Long OII; Short TRMA

As of Friday's close, Short Screen showed an Altman Z"-Score of -0.13 for Trico Marine Services (Nasdaq: TRMA) and an Altman Z"-score of 9 for Oceaneering International (NYSE: OII). Recall that Z"-scores below 1.1 indicate financial distress and risk of bankruptcy, and scores above 2.6 indicate financial strength (scores in between are in the gray zone). Today I shorted TRMA at $5.31 per share and bought an equivalent dollar amount of OII at $64.70 per share.