$MDR Is A Speculative Buy Above $2.24

MDR above $2.24 could see a nice run. Yesterday's high was $2.17 and the previous day's high was $2.24. We think the momentum players could jump in and drive MDR to $3 rather quickly.

A lot will depend on news and the progress MDR makes in restructuring its balance sheet. Here's the background story of what's going on:

McDermott (NYSE:MDR) is exploring strategic alternatives for its Lummus Technology unit, which it values at ~2.5B, after receiving unsolicited approaches to acquire all or part of the business.

Lummus is a licensor of proprietary petrochemicals, refining, gasification and gas processing technologies.

MDR says it has hired Evercore as the lead advisor on the strategic alternatives process for Lummus.

MDR shares have plummeted on bankruptcy fears.

As always, trade with caution and use protective stops.

Good luck to all!