Look out below!
Source: Google Finance.
Shares of marine logistics company, MMA Offshore Ltd (ASX: MRM) have today plummeted as much as 7.23% as the recent sell-off of its shares continues.
Whilst the S&P/ASX200 (ASX: XJO) (Index: ^AXJO) has risen almost 9% over the past year, its shares are down more than 65%!
Indeed MMA Offshore has been hammered by a falling oil price, as expectations of reduced resources sector spending takes its toll on service providers. However, after such a heavy fall in prices, now could prove to be a good time to add it to your watchlist.
Indeed a number of stock analysts have price targets well above the current market price for MMA shares (although many did cut their targets significantly following the company's recent half year profit result).
Should you buy MMA Offshore shares today?
I've got MMA Offshore on my watchlist. But given the outlook for the resources sector, I'm taking a cautious approach and avoiding buying its shares, for now.
