11-24-2018, 01:09 PM
(11-24-2018, 12:29 PM)vbin Wrote: @fenders, great points. sticking specifically to BHGE, I am looking at it from a prospective that If fundamentally nothing is wrong with BHGE and it’s able to grow over next 10 years, (oil demand is only going to grow, despite recent volatility) then in the event of GE unloading their stake, market will pull down BHGE further which can provide a great opportunity to buy and hold for next few years.
I am not looking beyond BP, RDS,XOM, CVX, PHX with an exception of BHGE, SLB, OIH.
Baker Hughes was a very good company for a lot of years. I haven't followed them lately. The last correction was brutal and long, and balance sheets changed for most oil company's. I agree oil demand will rise provided world economy doesn't have a recession. And so will supply if proper price point is maintained. Oil just about oozes out of the ground in the Middle East. Fracking is a lot more expensive to extract than that and the oil is lesser quality. But their break even oil price point is considerably lower than even 5 years ago. OPEC know's this and has no choice but influence the world's supply. The US is a big oil importer and exporter, which makes no sense at first glance. It's pretty complicated.