KBR is HAL's night in Vegas. It was Halliburton's greedy, controversial, company that will end up broke. Halliburton does not want to remember this nor want to be associated with it, because they know whats coming. Just as the guilty husband comes back from Sin City to a wife with interrogations. KBR will have many questions to answer in the coming months and years as campaign season gets into full swing and Congress grills them. They already have started.
There is no way this company will keep its contracts in Afghanistan and Iraq after the investigations started - let alone keep no bid contracts. This is the quintessential Wall Street sucker sell. It's like selling a broken, used condom to a virgin and telling him it'll prevent pregnancy. We all know that HAL and KBR have people in the know who have great influence on Wall Street and this was sold off while that influence could still be exerted.
There is no need to look at fundamentals because this company (no matter if our soldiers are on the streets of Tehran or hanging out in Pyongang) will not be able to operate in the coming years. Discount all future earnings to zero. This company should never have existed. Soldiers historically did everything they got paid to do in the past, and there really isn't much of a market for their services except for artificially created ones.
Also, recently there was a tender offer out swapping shares of HAL for KBR paying 5% more for HAL then it was marked to market. Who wants to get rid of their KBR so badly? Those who were there in Vegas with HAL and were forced to buy up some of the offering. STAY AWAY!
$21.75 (04/25/07)
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