Jerome, that makes some sense, but I disagree with you that there are lots of companies larger than HAL. With over $12B in probable sales, they are up there pretty high. But anyway, we'll just have to see how it plays out. I do agree that a break much below $10 on heavy volume wouldn't be very healthy. Let's hope it doesn't do that. Hopefully there is some relief next week after otpions expire tommorrow.
BTW - Maybe my humor is a little warped, but if you guys wants a good laugh, go over to the Yahoo thread and check out the battle. It's like watching Jerry Springer.
Here is what one "long" had to say after he finally lost it with all the inane postings and allegations. I think a lot of these guys are leveraged to the hilt with options. One guy even claimed he bought 100,000 shares at $10.30/sh today...LOL!
(this is not the feel-good post I was looking for - I think it was on Yahoo, but there are 46,000 posts and I am not going to wade through them..lol!)
FROM YAHOO BOARD:
Re: Why to buy-hold HAL
by: JWBOilT 01/17/02 08:50 pm
Msg: 46879 of 46880
Last time i thought you were probably stupid. Now I know you are. Halliburton and Enron and facking 3000 other companies use Arthur Anderson. So what? The bottom line is that Enron exec's were a bunch of crooks and they deserve to rot in the slammer. Enron's liabilities were due to internal criminal activity (fraudulent book keeping). Halliburton's liabilities are manageable and are due to a bunch of greedy lawyers. Halliburton is worth $25 per share - its such an easy calculation. Take the 1.2 billion after tax cash flow and multiply it by the industry average of 9-10 times (we'll use 10 because of Halliburton's good balance sheet) = 12 billion or about $28 per share.
THIS IS A NO BRAINER. Asbestos liablities are covered by insurance. And even if you assume a worst case scenario that Halliburton's outstanding claims are all worth $10,000 each (way too high) (with 200,000 claims) that gives $2 billion. Also assume (wrongly) that Halliburton has no insurance. Therefore Halliburton has a $2 billion liablity. These claims will take years to pay off, but let's assume an unrealistic case where these claims have to be paid now. HAL has $300 million cash, 1.2 billion cash flow, and at LEAST $700 million in available financing = $2 billion. Wham bam thank-you mam! So, let's correct the evaluation above by taking $2billion off the evaluation. HAL is now worth ONLY $10 Billion which is roughly $22 per share. NO FACKING BRAINER that this is undervalued. See you at 25 bucks soon.
So would all you shorts - SHUT THE FACK UP.
You are all stupid, but I still would like to thank you for giving me this stock at 10 bucks a share. |
