Wood Group sell off, one to watch.

The FTSE100 is feeling slightly more cheery today with the hope of a fiscal cliff deal coming sooner rather than later, but one company is not sharing in the cheer, Wood Group. The oil services company was recently promoted from the FTSE250, but hasn't really shown much in terms of share price performance. However, the price is down around 4% as of writing because of some family selling.

Wood family trust and members of the Wood family have sold 4.4% - 16.3m shares which represent their total stake - at 775p each through Credit Suisse, raising around £126m. Sir Ian Wood, the departing chairman and grandson of the company's founder, said he had no current intention to sell his 2.4% shareholding.

The news has sent Wood Group's shares down 33p to 782p, a 4% decline which makes them the biggest faller in a rising FTSE 100. But Oriel Securities said this was a good opportunity to buy into the company:

Overall we think [its] strong international position in offshore facilities, subsea and production support leaves the company well placed to take advantage of increasing industry spending.

Andrew Whittock at Liberum Capital kept a hold rating and said:

Given the family's apparent lack of interest in the business we would not read anything into this share sale.

http://www.guardian.co.uk/business/marketforceslive/2012/nov/29/ftse-eurozone-us-wood-group


The last comment is quite interesting, the family's lack of interest in the business. Is this an opportunity to get into what is and has been a pretty good business?  Might be best to keep it on a watchlist and look for some positive change in direction in the charts. Right now, the longer term charts are still suggesting negative.

Wood Group