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Halliburton 1 Of 3 Long-Term Prospects To Contemplate

May 24 2012, 11:55 by: Tactical Investor  |  about: HAL, includes: EOG, TNK

The markets are extremely oversold, and could potentially mount a strong relief rally. However, we still believe there is more downside to this market before a multi-month bottom takes hold. Long-term investors can use strong pullbacks to slowly start deploying money into long-term investments. A great way to get into a stock at a price of your choosing is to sell puts at strikes you would not mind owning the stock at. Investors looking for investment ideas might find these articles to be of interest: General Electric: An Option Strategy That Could Potentially triple your yield and 3M Company Among 3 Prospective Dividend And 2 Growth Plays.

Company: Halliburton Co (HAL)

Basic Key ratios

  1. Percentage Held by Insiders = 0.41
  2. Relative Strength 52 weeks = 30
  3. Cash Flow 5-year Average = 3.29
  4. Dividend Yield 5-Year Average = 1.16

Growth

  1. Net Income ($mil) 12/2011 = 2839
  2. Net Income ($mil) 12/2010 = 1835
  3. Net Income ($mil) 12/2009 = 1145
  4. Net Income Reported Quarterly ($mil) = 627
  1. EBITDA ($mil) 12/2011 = 6071
  2. EBITDA ($mil) 12/2010 = 4071
  3. EBITDA ($mil) 12/2009 = 2898
  4. Cash Flow ($/share) 12/2011 = 4.84
  5. Cash Flow ($/share) 12/2010 = 3.3
  6. Cash Flow ($/share) 12/2009 = 2.38
  1. Sales ($mil) 12/2011 = 24829
  2. Sales ($mil) 12/2010 = 17973
  3. Sales ($mil) 12/2009 = 14675
  1. Annual EPS before NRI 12/2007 = 2.66
  2. Annual EPS before NRI 12/2008 = 2.94
  3. Annual EPS before NRI 12/2009 = 1.35
  4. Annual EPS before NRI 12/2010 = 2.06
  5. Annual EPS before NRI 12/2011 = 3.36

Dividend history

  1. Dividend Yield = 1.2
  2. Dividend Yield 5 Year Average 12/2011 = 1.16
  3. Annual Dividend 12/2011 = 0.36

Dividend sustainability

  1. Payout Ratio 09/2011 = 0.1
  2. Payout Ratio 5 Year Average 12/2011 = 0.16

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 13
  2. 5 Year History EPS Growth 12/2011 = 0.96
  3. ROE 5 Year Average 12/2011 = 26.22
  4. Return on Investment 12/2011 = 19.65
  5. Debt/Total Cap 5 Year Average 12/2011 = 28.77
  6. Current Ratio 12/2011 = 2.79
  7. Current Ratio 5 Year Average = 3.1
  8. Quick Ratio = 2.19
  9. Cash Ratio = 0.95
  10. Interest Coverage Quarterly = 13.73

Suggestions

It has taken a pretty serious beating over the past one year and potentially could test the 25 ranges where the support is very strong. One suggestion would be to wait for a test of the 30 ranges and then sell puts with strikes in the 24-27 ranges. When you sell puts you have the chance of getting into a stock you like at lower cost as you get to subtract the premium you received from the strike price.

Company: Teekay Tankers (TNK)

Levered free cash flow = $37.4 million

Growth

  1. Net Income ($mil) 12/2011 = -9
  2. Net Income ($mil) 12/2010 = 16
  3. Net Income ($mil) 12/2009 = 42
  1. EBITDA ($mil) 12/2011 = N/A
  2. EBITDA ($mil) 12/2010 = 69
  3. EBITDA ($mil) 12/2009 = 99
  4. Cash Flow ($/share) 12/2011 = 1.08
  5. Cash Flow ($/share) 12/2010 = 1.74
  6. Cash Flow ($/share) 12/2009 = 3.74
  1. Sales ($mil) 12/2011 = 121
  2. Sales ($mil) 12/2010 = 139
  3. Sales ($mil) 12/2009 = 113
  1. Annual EPS before NRI 12/2007 = 2.76
  2. Annual EPS before NRI 12/2008 = 2.6
  3. Annual EPS before NRI 12/2009 = 0.97
  4. Annual EPS before NRI 12/2010 = 0.53
  5. Annual EPS before NRI 12/2011 = 0.17

Dividend history

  1. Dividend Yield = 14.4
  2. Dividend Yield 5 Year Average 12/2011 = 14.53
  3. Annual Dividend 12/2011 = 0.83
  4. Dividend 5 year Growth 12/2011 = -27.81

Dividend sustainability

  1. Payout Ratio 06/2011 = 3.53
  2. Payout Ratio 5 Year Average 12/2011 = 1.93

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 3
  2. ROE 5 Year Average 12/2011 = 16.99
  3. Current Ratio 06/2011 = 1.67
  4. Current Ratio 5 Year Average = 2.32
  5. Quick Ratio = 1.67
  6. Cash Ratio = 1.59
  7. Interest Coverage Quarterly = 0.63

Suggestions

This play carries a higher risk but individuals willing to take on some risk could end up reaping handsome rewards.

Company: EOG Resources, Inc. (EOG)

Growth

  1. Net Income ($mil) 12/2011 = 1091
  2. Net Income ($mil) 12/2010 = 161
  3. Net Income ($mil) 12/2009 = 547
  4. Net Income Reported Quarterly ($mil) = 121
  1. EBITDA ($mil) 12/2011 = 4637
  2. EBITDA ($mil) 12/2010 = 2479
  3. EBITDA ($mil) 12/2009 = 2522
  4. Cash Flow ($/share) 12/2011 = 13.11
  5. Cash Flow ($/share) 12/2010 = 8.81
  6. Cash Flow ($/share) 12/2009 = 9.13
  1. Sales ($mil) 12/2011 = 10126
  2. Sales ($mil) 12/2010 = 6100
  3. Sales ($mil) 12/2009 = 4787
  1. Annual EPS before NRI 12/2009 = 3
  2. Annual EPS before NRI 12/2010 = 1.16
  3. Annual EPS before NRI 12/2011 = 3.79

Dividend history

  1. Dividend Yield = 0.7
  2. Dividend Yield 5 Year Average = 0.61
  3. Dividend 5 year Growth = 14.01

Dividend sustainability

  1. Payout Ratio 06/2011 = 0.17
  2. Payout Ratio 5 Year Average 12/2011 = 0.19

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 44.39
  2. ROE 5 Year Average 12/2011 = 12.37
  3. Current Ratio 06/2011 = 1.29
  4. Current Ratio 5 Year Average = 1.22
  5. Quick Ratio = 1.06
  6. Cash Ratio = 0.47
  7. Interest Coverage Quarterly = 5.27

Disclaimer

This list of stocks is meant to serve as a starting point. Please do not treat this as a buying list. It is imperative that you do your due diligence and then determine if any of the above plays meet with your risk tolerance levels. The Latin maxim caveat emptor applies - let the buyer beware.

Source: Halliburton 1 Of 3 Long-Term Prospects To Contemplate

Additional disclosure: EPS and Price Vs industry charts obtained from zacks.com. A major portion of the historical data used in this article was obtained from zacks.com.

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