Dunclan Williams Comments On Hercules Offshore Following SEC, DOJ Probe

After the close yesterday, Hercules Offshore HERO announced the SEC had presented a subpoena for certain documents in connection with its investigation into possible violations of securities laws, including the FCPA. The company was also notified by the DOJ that it was under investigation for certain activities in international jurisdictions. The most likely area of concern for FCPA violations is in the West Africa area, where other oil companies and oilfield service companies have paid fines violating the FCPA. While the company announced it intends to cooperate with the investigation, Duncan Williams believes this shall put pressure on the stock in the near term and the legal cost of the investigation is unknown at this time. Duncan Williams has a $10.50 PT and Strong Buy rating on HERO HERO closed Thursday at $6.38