Halliburton (HAL) and Baker Hughes (BHI) are downgraded to Underweight at Morgan Stanley, part...


Halliburton (HAL) and Baker Hughes (BHI) are downgraded to Underweight at Morgan Stanley, part of the firm's dim view of the oil services drilling and equipment sector (OIH) due to concerns about revenue growth seen slowing to 5% from 16% for the rest of the decade. HAL -1.6%, BHI -1% premarket.

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Comments (8)
  • dancing diva
    , contributor
    Comments (2731) | Send Message
     
    For the rest of the decade?
    30 May 2013, 09:29 AM Reply Like
  • mosheoskar
    , contributor
    Comments (68) | Send Message
     
    The freaky thing is that the market is reacting to this. Pathetic.
    Hal looks good to me
    30 May 2013, 01:34 PM Reply Like
  • rjj1960
    , contributor
    Comments (1471) | Send Message
     
    Makes a lot of sense, we are in 2013 so guessing 5-7 years out is quite easy. And they pay these people.........
    30 May 2013, 10:39 AM Reply Like
  • peter_griffin
    , contributor
    Comments (29) | Send Message
     
    " for the rest of the decade" seems a little harsh. oil activity if at an all time high plus natural gas is well off the lows of last year and holding steady above $4. Also everyone seems convinced that the USA might export some of its natural gas.

     

    where is the slowdown coming from?
    30 May 2013, 02:18 PM Reply Like
  • Fear & Greed Trader
    , contributor
    Comments (10057) | Send Message
     
    Most can't figure out the next 6 months and these wizards are telling me about the next 7 years ??

     

    File this under "A" for absurd.
    30 May 2013, 02:32 PM Reply Like
  • Spencer Knight
    , contributor
    Comments (389) | Send Message
     
    It makes reasonable sense. If MS thinks oil prices will stabilize (i.e. not continue to perpetually climb higher) then revenues will not grow at the same rates we have seen. Until Nat Gas is used more widely it's simply a drip in the ocean. All this trickles back down to the drillers and equipment suppliers. I for one believe more useful and reasonably priced electric cars will be created over the next decade and hopefully stop the increasing demand for oil. If demand decreases for oil what happens to the price? Think trickle down effect after you answer that...
    30 May 2013, 03:11 PM Reply Like
  • Fear & Greed Trader
    , contributor
    Comments (10057) | Send Message
     
    Spencer,

     

    Interesting points, but where is China, India, et al in this equation. Those emerging economies will surely have an impact on demand.. My personal belief is that part of the equation always seems to be underestimated.. Just my .02..
    30 May 2013, 03:25 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3121) | Send Message
     
    Overbought sector.
    30 May 2013, 06:03 PM Reply Like
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