BHI

Baker Hughes Inc

Energy, Event Driven/Special Sit


Presented:07/08/2015
Price:$59.74
Cap:$25.97B
Current Price:$36.32
Cap:$37.67B

Presented

Date07/08/2015
Price$59.74
Market Cap$25.97B
Ent Value$30.33B
P/E Ratio32.64x
Book Value$40.98
Div Yield1.14%
Shares O/S434.68M
Ave Daily Vol2,852,476
Short Int1.40%

Current

Price$36.32
Market Cap$37.67B
Baker Hughes, Inc. is a supplier of oilfield services, products, technology and systems to the worldwide oil and natural gas industry. It also provides industrial and other products and services to the downstream refining, and process and pipeline industries. The company's oilfield products and services are categorized under two heads: Drilling and Evaluation or Completion and Production. The Drilling and Evaluation consists of various product lines, including drill bits, drilling services, wireline services and drilling fluids. The Completion and Production consists of various product lines, including completion systems, wellbore intervention, intelligent production systems, artificial lift, upstream chemicals and pressure pumping. Baker Hughes operates through five reportable segments: North America, Latin America, Europe, Africa and Russia Caspian, Middle East and Asia Pacific and Industrial Services and Other. Its other businesses also include downstream refining, and process and pipeline services. The company was founded in April 1987 and is headquartered in Houston, TX.

Publicly traded companies mentioned herein: Baker Hughes Incorporated (BHI), Halliburton Company (HAL)

Highlights

The presenter believes oilfield services companies are overvalued, and one play in particular is attractive to him at this time: short Baker Hughes (BHI). The DOJ is presently reviewing the proposed deal with Halliburton (HAL) and the current deal spread is in the 9% - 10% range ($5.50). The presenter opined that the Street is overly optimistic about the deal closing and investors such as risk arbitrage specialists and generalists may not fully appreciate the downside risk if the deal faces delays or - in the best case scenario for the short position - falls through.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.