Halliburton poised for Q1 "Upside Surprise"

[Cocoa]

anyone know what they mean by "questions about execution?" Are they going to off Cheney?

http://www.forbes.com/markets/economy/2005/01/31/0131automarketscan13.html


.P. Morgan Securities said Halliburton (nyse: HAL - news - people ) is poised for an "upside surprise" in the first quarter despite investors' mixed reaction to the oil services company's fourth-quarter results. Halliburton reported quarterly operating earnings-per-share of 48 cents per share, in line with the consensus estimate. "Halliburton has a number of positives going for it currently, including strong volume growth and continued pricing momentum," J.P. Morgan said. "In addition, asset turnover should improve in the first quarter of 2005, as a number of startup/facility consolidation costs reverse. Potential bonus awards for KBR's work in Iraq are another catalyst. When coupled with "core" profitability of 52 cents per share in the fourth quarter, Halliburton looks poised for upside surprise in the first quarter of 2005." The research firm maintained an "outperform" rating, "given the strength of Halliburton's core profitability and relative valuation." It added, "Halliburton is currently trading at 10.3 times estimated 2005 EBITDA , a 16% discount to Schlumberger (nyse: SLB - news - people ) and Baker Hughes (nyse: BHI - news - people ). Even with KBR valued at zero, the stock still trades at a discount of 6%, which seems low to us given the company's eastern hemisphere exposure and pricing momentum. With upside to the valuation of the core oilfield operations and a free option on the KBR spinoff, we believe the relative upside in Halliburton is consistent with an overweight rating." J.P. Morgan removed Halliburton from its "focus list" of stocks, however, and said the oil services company's fourth-quarter results have "generated questions about execution."

[Kagemusha]

1. They mean being held back by baggage from when

Cheney was in charge, from Iran operations and stuff like that. Sure, you have big plans, on paper you are due lots of money, but is it really gonna happen? Haliburton's had a really busy year. It it gets back to just making money for 3 months it'll be (as a company) all right.

[Rick Myers]

2. Dick Cheney, Super CEO!!! LOL

KBR is valued at ZERO!!! That's Dick Cheney's legacy, spending $7 BILLION for a worthless company mired in debt and lawsuits! And they want to run the Nation 'like a bidness???"

[Cocoa]

4. Cheney had zero business experience

and they made him CEO.

[SoCalDem]

3. Surprise !!! We stole a whole bunch of treasury money

Put your hands together, stockholders :):)

maybe now we "know" where some of that "missing money" went :(

[struggle4progress]

9. !

[librechik]

5. did they make 8.8 B? cuz that amount is missing from the place where

they were supposed to draw some of their pay, and they are notoriously bad accountants.

[indepat]

6. Now, let's not get nasty

[cthrumatrix]

7. they are going to "book" the steroid profits from Iraq (our tax dollars) !

[orthogonal]

8. I R A N

It may feel drafty, but at least we have plenty of oil to warm us.

[fshrink]

10. Classical.

What do you do when you know you're gonna make profit through an operation you cannot claim? You warn ahead of time that there might be a "surprise". If you're "surprised", then, logically you didn't expect it, and therefore you implicitly deny your involvement in the operation. But without disclaiming it. Which puts you in a better position than to counter-attack. This is propaganda 101: and that is the level now operational in the US. No need for more with all the controls in hand. Gives you another clue of where we really are..!