We believe TFC will be able to find a new lender on acceptable terms, in which case the stock is very cheap right now. However, there is a risk that the change of lenders could cause problems. Imperial Chemical has performed well recently, apparently in response to the completion of asset sales. We think the stock could go higher, and we are raising our maximum buying price to 38. Halliburton announced an internal restructuring that will further separate its engineering and construction business from its oilfield services business.
Some analysts now expect the company to sell or spin off the engineering and construction business.
Halliburton s stock has lagged other oilfield services stocks, but we expect it to catch up as it continues to reorganize and streamline its businesses.