BHI is the 3rd largest US company in the Oil Services sector. The Oil Services sector is a major buy opportunity these days as the recent drop in oil price resulted in these stocks overshooting on the down side. A few small earnings downgrades should come up on the next few weeks as activity in NA has been quite weak due to high temperatures. Still, growth is in place for the next 4/5 years as long as oil stays above USD 35/40. This is one of the few sectors where it pays off to buy large caps as they have the size, skill, distribution channels and relationship with clients in place to seize growth in Middle East, Southeast Asia and Russia. BHI is quite diversified in its product offer and incidently doesn't operate in pumping, which is the earliest stage segment and hence likely to be first to decelerate in a few years time. After FY06 numbers are disclosed, the market will start looking at 2007 and will find a P/E of 15 and revenue growth above 10% for a couple of years with plenty of room for operational leverage. A screaming buy.
$66.3 (01/28/07)
