Defense Stock #3 – Halliburton Company (HAL)
If there is a company more emblematic of the Bush era, Halliburton (HAL) would be it. With ties to
former Vice President and chief architect of preemptive foreign policy, Dick Cheney, HAL benefitted greatly from the wars in Iraq and Afghanistan.
Not only did HAL benefit from increasing oil prices due to instability in the Middle East, but the company made a killing on so-called no-bid contracts
for construction and military support services provided by the company. Where do you think no-bid contracts go under Obama? Can you say bye-bye? Of
course Obama cannot take away what has already been given, but how in the world will HAL replace the cushy Washington environment enjoyed over the
last decade? You cannot.
Why the stock is higher today than when Obama was elected is a mystery. But to me, the future of HAL is crystal clear. HAL will be generating fewer
dollars as these contracts expire. That means lower profits and a lower valuation.
If there was one stock to sell under Obama it would be HAL. Sell shares now before the market figures it out.
- Poll of the Day