Halliburton Co (HAL)

Wide range of oil field services and has been doing pretty well. This should continue to be a major beneficiary and you are seeing a fair amount of capital expenditure by the majors. Not especially expensive for a stock with as good a pedigree as it has. If you are going to pay high teens for anyone, somebody with the geographical breadth and the range of different services offered that this one has, is probably a better bet than some of the other stuff that is selling in the high teens or mid-$20 in the US market.

The leading US service company. Can’t see it falling below the 200 day moving average and can easily see it getting back up into the $54 range. One thing he finds troubling is that they have property in West Africa. In 2015, the US will be the world’s largest oil producer. 1.2% dividend yield.

Good earnings but expectations were heightened. Rig counts are down in North America.

$71.57 Model price, 40% upside. It is his number one position in one fund. Like most large cap stocks in the US, this looks absolutely great.

(BNN got their Past Top Pick dates wrong on today’s shows. I show the 3 Top Picks as being on July 25/12, not June 25/12. – Bill)

(A Top Pick July 25/12. Up 64.9%.) Doing very, very well on the international side. Have yet to hit on all cylinders domestically, although that is starting to happen. It is really a function of natural gas prices, which is a boon to them because there are so many wells being drilled.

(A Top Pick July 25/12. Up 39.91%.) The US has had an explosion in fracing which means there is a lot of need for a lot more equipment. However, they have really made their money in the international markets.

Have been carried over the last year or so on the back of their international business but their domestic business is starting to pick up with the US energy self-sufficiency move. There is a lot of optimism and a lot of activity surrounding that. Sort of ebbs and flows with the price of natural gas.

Pretty good valuation, reasonable growth prospects. Only 50% of their revenue comes from onshore US.

Oil field services. Have been doing very well internationally but domestic side has been poor. Oil rig counts are way down and he believes this is troughing. A supply/demand situation. As the US move towards energy self-sufficiency, there is going to be a lot of work for companies like this. Earnings have some room to grow. Dividend yield of 1.2%.

(A Top Pick Jan 11/12. Up 5.09%.) Not much good has happened in terms of their domestic side. It has really been driven by the international side. With natural gas prices still being down, there isn’t a lot of work for them domestically. That is still to come and he believes it will.

There is a level of resistance at around $40 that you want to see it break through. This is an energy stock that is moving into that period of time that it should break out but don’t count on it until it happens.

Looks like a lot of the oils. Has overhead resistance. He is a little bit cautious on the oil sector.

One of his favourite tools is Relative Performance. The sector is starting to turn up so this stock will probably move above its resistance point of around $40.

(Market Call Minute.) Good growth in the international and doesn’t get any credit for it. One of the go to names.

This is a space that got beaten down much too much after 2008 and has had a really slow recovery. He doesn't own any drillers or oilfield service companies. The volatility in this sector drives him nuts. This one is a top quality name.