Canaccord Genuity Morning Coffee On Hercules Offshore (HERO): Mighty Enough To Take On The SEC?
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Price: $27.42 +0.40%
Rating Summary:
3 Buy, 8 Hold, 5 Sell
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
3 Buy, 8 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Canaccord Genuity Morning Coffee on Hercules Offshore (Nasdaq: HERO): Mighty enough to take on the SEC?
Canaccord analyst says, "Hercules Offshore, the largest shallow water driller in the Gulf of New Mexico, announced it had been subpoenaed by the Securities and Exchange Commission related to possible violations of the Foreign Corrupt Practices Act. Additionally, Hercules was notified that the Department of Justice would be looking in to its operations. According to a regulatory filing, the company is being investigated by the SEC regarding possible violations by its international operations of anti-briber laws. The company said, “At this time, it is not possible to predict the outcome of the investigations, the expenses we will incur associated with these matters, or the impact on the price of our common stock or other securities if the SEC or DOJ takes any actions regarding these investigations.” Hercules intends to cooperate with the SEC in the investigation, and did not elaborate what the purpose of the DOJ’s investigation would be. According to one Wall Street analyst, punishment for violation of SEC bribery laws is typically a fine between $25 and $70 million, a significant amount given that Hercules currently has approximately $266 million in cash and unused credit. In November, Royal Dutch Shell (NYSE: RDS.A) and six other companies agreed to pay a total of $236 million in fines stemming from an investigation surrounding allegations of bribing foreign officials to bring equipment into several countries."
Canaccord analyst says, "Hercules Offshore, the largest shallow water driller in the Gulf of New Mexico, announced it had been subpoenaed by the Securities and Exchange Commission related to possible violations of the Foreign Corrupt Practices Act. Additionally, Hercules was notified that the Department of Justice would be looking in to its operations. According to a regulatory filing, the company is being investigated by the SEC regarding possible violations by its international operations of anti-briber laws. The company said, “At this time, it is not possible to predict the outcome of the investigations, the expenses we will incur associated with these matters, or the impact on the price of our common stock or other securities if the SEC or DOJ takes any actions regarding these investigations.” Hercules intends to cooperate with the SEC in the investigation, and did not elaborate what the purpose of the DOJ’s investigation would be. According to one Wall Street analyst, punishment for violation of SEC bribery laws is typically a fine between $25 and $70 million, a significant amount given that Hercules currently has approximately $266 million in cash and unused credit. In November, Royal Dutch Shell (NYSE: RDS.A) and six other companies agreed to pay a total of $236 million in fines stemming from an investigation surrounding allegations of bribing foreign officials to bring equipment into several countries."
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