MMR - having problems with Davy Jones

McMoran Exploration (MMR) is having serious problems with one of its major investments, the 'Davy Jones' natural gas well. Its almost a 1 billion dollar investment, and the disappointing news has really upset the market, with MMR shares losing a further 15%, to close @ $8.17, although that's almost a full dollar above the morning lows.


MMR, daily

Summary

So, a pretty wild and crazy two days trading, and its effectively impossible to guess where this stock will go as the week progresses. Perhaps the near term low has been put in this morning, but that really would be a completely unreliable guess.

There will be clear gap resistance from the drop around $9 to $9.50.

It would be very surprising if MMR can claw its way back into double digits before next year.


Losing money..by the day

see key stats, via Yahoo! finance

With its lack of profitability, MMR is arguably one to watch from the sidelines, and marvel at those 'knife catching' traders who believe they can pick up a bargain.