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To: sun-tzu who wrote (146100)	1/25/2002 3:51:53 AM
From: sun-tzu	Respond to of 436258

From Doug Kass re: HAL (a great read!) Tale of the Tape 1/24/02 09:15 AM EST It's useful to compare stats for Halliburton (HAL:NYSE) with Schlumberger's (SLB:NYSE). I made a chart that can't be reproduced here, but consider this: HAL closed yesterday at $10 with a market cap of $4.6 billion, 2002 estimated revenue of $13.1 billion, 2002 estimated EPS of $1.10, a P/E ratio of 10, a 13% return on equity, debt-to-equity ratio of 0.3, price-to-book of 1.0, price to sales of 0.3 and with asbestos exposure. SLB closed at $51, with a market cap of $29.7 billion, 2002 estimated revenue of $14 billion, 2002 estimate EPS of $1.65, a P/E ratio of 38, return on equity of 7%, debt-to-equity of 0.8, price-to-book of 3.5, price-to-sales of 2.4 and without asbestos exposure. This speaks volumes about the adverse influence that asbestos exposure has on the relative valuation of Halliburton vs. Schlumberger. It also speaks volumes about the opportunity in Halliburton's common shares if you believe, as I do, that concerns regarding HAL's asbestos liability are overblown. As detailed by Chris Edmonds in the Columnist Conversation this morning, Halliburton's management attempted last evening to assuage asbestos fears. Chairman Lesar stated "We were disappointed that excellent operational results were overshadowed by the market's overreaction to asbestos, but we believe that our patient investors will be rewarded." Management detailed their progress in settling asbestos claims. The number of new cases filed against the company dropped for the second consecutive quarter. Halliburton has settled 36,000 claims with a very low settlement figure (the aggregate amount paid over 20 years was less than what HAL pays out in a three-month period for shareholder dividends), and only 17 cases have gone to jury trial. No doubt Halliburton's stock is a risky situation as investors are subject to strange interpretation of the law by the judicial system as it relates to asbestos. Nonetheless, I think Halliburton might be a home run. Just look at the numbers! Long HAL. FD...i went long HAL based on his research at 10.05

To: sun-tzu who wrote (146100)	1/25/2002 3:52:26 AM
From: sun-tzu	Respond to of 436258

From Doug Kass re: HAL (a great read!) Tale of the Tape 1/24/02 09:15 AM EST It's useful to compare stats for Halliburton (HAL:NYSE) with Schlumberger's (SLB:NYSE). I made a chart that can't be reproduced here, but consider this: HAL closed yesterday at $10 with a market cap of $4.6 billion, 2002 estimated revenue of $13.1 billion, 2002 estimated EPS of $1.10, a P/E ratio of 10, a 13% return on equity, debt-to-equity ratio of 0.3, price-to-book of 1.0, price to sales of 0.3 and with asbestos exposure. SLB closed at $51, with a market cap of $29.7 billion, 2002 estimated revenue of $14 billion, 2002 estimate EPS of $1.65, a P/E ratio of 38, return on equity of 7%, debt-to-equity of 0.8, price-to-book of 3.5, price-to-sales of 2.4 and without asbestos exposure. This speaks volumes about the adverse influence that asbestos exposure has on the relative valuation of Halliburton vs. Schlumberger. It also speaks volumes about the opportunity in Halliburton's common shares if you believe, as I do, that concerns regarding HAL's asbestos liability are overblown. As detailed by Chris Edmonds in the Columnist Conversation this morning, Halliburton's management attempted last evening to assuage asbestos fears. Chairman Lesar stated "We were disappointed that excellent operational results were overshadowed by the market's overreaction to asbestos, but we believe that our patient investors will be rewarded." Management detailed their progress in settling asbestos claims. The number of new cases filed against the company dropped for the second consecutive quarter. Halliburton has settled 36,000 claims with a very low settlement figure (the aggregate amount paid over 20 years was less than what HAL pays out in a three-month period for shareholder dividends), and only 17 cases have gone to jury trial. No doubt Halliburton's stock is a risky situation as investors are subject to strange interpretation of the law by the judicial system as it relates to asbestos. Nonetheless, I think Halliburton might be a home run. Just look at the numbers! Long HAL. FD...i went long HAL based on his research at 10.05