Odyssey Marine Exploration, Inc. (OMEX) saw a wild ride in the stock market on Wednesday. The company’s shares took a nosedive on Tuesday after Odyssey announced a favorable arbitration award against the United Mexican States under Chapter Eleven of the North American Free Trade Agreement (NAFTA).
The International Centre for Settlement of Investment Disputes (ICSID) ruled in favor of Odyssey and its subsidiary, Exploraciones Oceánicas S. de R.L. de C.V. (ExO), awarding them $37.1 million. Mexico was found to have breached its obligations under NAFTA.
Odyssey plans to use a majority of the award to settle its litigation financing obligations. The company’s stock plummeted by a staggering 90% on Tuesday following the announcement.
However, Wednesday brought a dramatic reversal. OMEX shares surged on heavy trading volume, experiencing multiple halts to the upside. The stock reached a new 52-week low of 45 cents on Tuesday but has since soared over 160% to $1.33, according to Benzinga Pro.
While the company’s future remains uncertain, the award has injected a dose of optimism into the stock market.
For those interested in investing in OMEX, there are a few ways to gain exposure to the stock:
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Direct purchase:
You can purchase shares of OMEX directly through a brokerage platform.*
Exchange Traded Funds (ETFs):
ETFs that track the Industrials sector, where OMEX is categorized, can provide indirect exposure to the company.*
401(k) allocation:
You can allocate a portion of your 401(k) to funds or strategies that invest in the Industrials sector.The dramatic price fluctuations in OMEX shares highlight the volatility of the stock market and the potential impact of significant events on company valuations. Investors should always conduct thorough research and consider their risk tolerance before making investment decisions.
