Halliburton Co (HAL)

These things are all getting beaten up for various reasons. In this case there is also an M&A. They will eventually be the largest energy services company in the world. Don’t sell it here. If it gets below the lows of the last couple of years you might want to sell it.

He is particularly interested in it after their acquisition. It is cheaper than SLB-N.

With the recent bid for Baker Hughes, the price has fallen 10%. He is really dumbfounded by this whole situation. This was rumoured last Friday and they met all weekend. He finds this thing to be absurd and he just doesn't get it. If you own it, let this thing play out and see where it is going.

Acquiring Baker Hughes. Between this and Schlumberger (SLB-N), they will have anywhere from 60% to 90% market share, which will be more concentration than regulators are going to want to see. They will have to get through an antitrust test. There are going to be tremendous synergies. This is probably going to be a good deal.

Likes this and the energy services space a lot. In this part of the cycle, especially when the energy sector is moving up, these service companies are the ones that are most leveraged and tend to do well. This is a great one to own. Pretty cheap relative to the rest of the market. Looking for a 5%-10% pullback.

Outlook is better than expected. International business has done extremely well for them. Mexico offers a very big opportunity in the next 12 months. Domestically drilling in shale formations suggests a big upside for them.

Second biggest energy services businesses in the world. Involved in fracking. They are global. A cold winter did not impact them like Canadian-only companies.

(A Top Pick March 13/13. Up 37.21%.) Not much has changed. Still doing extremely well internationally. Still struggling a little bit domestically, but that is kind of fuel for the future. Quite excited about the fact that there should be some big activity in the US. They just need the well build cycle to build and domestically he thinks they will do quite well. On the international side they are growing at double digit revenue new growth.

Wide range of oil field services and has been doing pretty well. This should continue to be a major beneficiary and you are seeing a fair amount of capital expenditure by the majors. Not especially expensive for a stock with as good a pedigree as it has. If you are going to pay high teens for anyone, somebody with the geographical breadth and the range of different services offered that this one has, is probably a better bet than some of the other stuff that is selling in the high teens or mid-$20 in the US market.

The leading US service company. Can’t see it falling below the 200 day moving average and can easily see it getting back up into the $54 range. One thing he finds troubling is that they have property in West Africa. In 2015, the US will be the world’s largest oil producer. 1.2% dividend yield.

Good earnings but expectations were heightened. Rig counts are down in North America.

$71.57 Model price, 40% upside. It is his number one position in one fund. Like most large cap stocks in the US, this looks absolutely great.

(BNN got their Past Top Pick dates wrong on today’s shows. I show the 3 Top Picks as being on July 25/12, not June 25/12. – Bill)

(A Top Pick July 25/12. Up 64.9%.) Doing very, very well on the international side. Have yet to hit on all cylinders domestically, although that is starting to happen. It is really a function of natural gas prices, which is a boon to them because there are so many wells being drilled.

(A Top Pick July 25/12. Up 39.91%.) The US has had an explosion in fracing which means there is a lot of need for a lot more equipment. However, they have really made their money in the international markets.

Have been carried over the last year or so on the back of their international business but their domestic business is starting to pick up with the US energy self-sufficiency move. There is a lot of optimism and a lot of activity surrounding that. Sort of ebbs and flows with the price of natural gas.