Halliburton, a Bet on Oil's Rebound
This article is for subscribers only.
Even though this may be a painful bear market, the maxim for long-term investing stays true: Buy the strongest companies in the worst of times. Veteran market analyst Glenn Cutler says Halliburton (HAL) fits the bill as oil prices fall.
Shares of this globally integrated oil-services company skidded to 13 a share on Nov. 20, down from 55 in July. They edged up to 18.41 on Dec. 17. It will be among the first to snap back once the economy and oil prices recover, says Cutler (he owns stock), publisher of Cutler's Stock Market Blog & Special Situations Reports at TheWinnersForum.com. He says Halliburton's strong balance sheet, with cash of $1 billion and a $1.6 billion credit line, provides a safety cushion.