Baker Hughes Trading at More Than 20% Discount

Baker Hughs (BHI) is the same great well run oil driller that it was last year, except that it is now even more profitable and selling at the same level as when I bought it last February.

The company's just released quarterly results beat year ago quarter by 25%, but were a tad below those expected by analysts on average, some of whom also lowered their earnings expectations for 2008.

In any case, BHI is still expected to earn well over $5 / share by every analyst - more than they ever made before, yet almost certain to happen. Furthermore, Baker Hughes is very likely to beat these expectations earning over $5.50.

However, given the current nervous market environment, BHI stock is now trading at more than 20% discount and is a good buy. I picked some up at $64.63

Disclosure: Author holds a position in BHI

Comments

[Bhakta:]

I agree with your comments and am also bying BHI at this time.

2008 Mar 08 10:28 AM