• 4 minutes Trump will meet with executives in the energy industry to discuss the impact of COVID-19
  • 8 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 11 minutes Why Trump Is Right to Re-Open the Economy
  • 13 minutes Its going to be an oil bloodbath
  • 5 hours While China was covering up Covid-19 it went on an international buying spree for ventilators and masks. From Jan 7th until the end of February China bought 2.2 Billion masks !
  • 9 mins Ten days ago Trump sent New York Hydroxychloroquine. Being administered to infected. Covid deaths dropped last few days. Fewer on ventilators. Hydroxychloroquine "Cause and Effect" ?
  • 41 mins US Shale Resilience: Oil Industry Experts Say Shale Will Rise Again
  • 10 hours China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 8 hours Real Death Toll In CCP Virus May Be 12X Official Toll
  • 29 mins Which producers will shut in first?
  • 8 hours Marine based energy generation
  • 12 hours Today 127 new cases in US, 99 in China, 778 in Italy
  • 7 hours What If ‘We’d Adopted A More Conventional Response To This Epidemic?’
  • 8 hours How to Create a Pandemic
  • 9 hours Apple to Bypass Internet and Beam Directly to Phones
  • 1 day TRUMP pushing Hydroxychloroquine + Zpak therapy forward despite FDA conservative approach. As he reasons, "What have we got to lose ?"

Baker Hughes, A GE Company: I Hate the Name but Like the Stock

Cash

Logically, the name of a company does not matter to investors at all. It should be all about profit and prospects, but I have never felt the same about Google (GOOG: GOOGL) since they became Alphabet and I have an illogical, but I believe understandable, aversion to names that are changed to hide the identity or industry of the company, like Accenture (ACN) or Altria (MO). Even worse though, is when a company name is unwieldy, and the best recent example of that has to be “Baker Hughes, A GE Company” (BHGE). Any name that attempts to tell a story or includes punctuation is an abomination, and BHGE fails on both fronts. Still, after a drop on disappointing earnings this morning, I am prepared to swallow my pride and buy the stock.

As I have often pointed out, one of the most fundamental things to keep in mind when looking at corporate earnings is that while last quarter’s results are, by definition, history, the stock market is generally a forward discounting mechanism. Prospects usually matter more than past performance and, on that basis, BHGE looks like a bargain.

The usual measure of price relative to expectations is the PE/ Growth, or PEG, ratio. When that ration is below 1.0 it is generally considered an indicator of value, and BHGE’s PEG right now is 0.36. The numbers are therefore encouraging, but like my reasons for disliking the stock in general, my reasons for liking it right now are a little less mathematical.

(Click…




Oilprice - The No. 1 Source for Oil & Energy News