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re: Schlumberger - Let's talk about it

Posted on 9/12/12 at 11:08 am to
Posted by barry
Location, Location, Location
Member since Aug 2006
50463 posts
Posted on 9/12/12 at 11:08 am to
quote:

Why is SLB trading at 18x and HAL is trading at 10x? Are the forward earnings looking that good/bad?


Its more of a factor of HAL being undervalued, I'd definitely buy HAL over SLB. Its possible HAL is still having a macondo hangover.

Posted by jonboy
Member since Sep 2003
7168 posts
Posted on 9/12/12 at 12:00 pm to
By comparison:
SLB 18x
NOV 15x
BHI 11x
HAL 10x

NOV is interesting here. Their automated drilling technology is going to have a huge impact on the industry. There is talk that some of the technology is so advanced the "on location" directional driller will be a thing of the past. SLB is also a player in the automated space.
I do agree that HAL is undervalued due to GOM deepwater activity.
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