Mark Holder
All posts from Mark Holder
Mark Holder in Out Fox The $treet,

Baker Hughes: Long-Term Play On DOJ Move

With the DOJ moving to block the Halliburton (HAL) and Baker Hughes (BHI) merger, the play on an eventual cancellation of the merger is Baker Hughes. The oilfield service company gets a $3.5 billion breakup fee that gives it a solid balance sheet. 

The big hiccup of rushing into the stock now is that evidence suggests the company is in disarray pending the merger. Similar to what happened with T-Mobile (TMUS) with the cancellation of the AT&T (T) takeover, it took some time for the wireless player to gain momentum. 

While currently positioned in Halliburton, the move will be to shift into Baker Hughes as the company obtains the breakup fee and starts to utilize it to repurchase shares or buys assets from beaten down competitors. 

Disclosure: Long HAL