Halliburton Company (HAL) is Still Underrated: Jim Cramer


Halliburton Company (NYSE:HAL) has just reported their second quarter earnings which increased by 20%. Share buyback authorization was also raised to $6 billion. They have also earned 91 cents per share at the end of second quarter which is much more than 69 cents per year at the end of second quarter in 2013. CNBC’s Jim Cramer talked about Halliburton Company’s good second quarter earnings and geopolitical concerns in Squawk on the Street.


Cramer said that Halliburton Company (NYSE:HAL) is one of the North American (Houston based) fracking company. He also said that he likes the company’s intent to hire more people rather than firing or downsizing like other companies do. He feels that they have a great business and are doing really well.

He also said that they have tremendous buyback options. The company’s buybacks authorization has increased five times from the last year which he feels is a great sign. At the end of second quarter, North American revenue for the company is also up by 11%. Its 91 cents per share earnings also meets the street’s expectation. The stock price of the Halliburton is up by 40% from beginning of the year. All the above statistics indicate a busy earning quarter for the company. Cramer said on the hiring policy of the company:

“Hallibutron, I have interviewed them twice on location where there is drilling and both times they have said to me, can we emphasize that we need workers. It’s such a mismatch in the country, because by the way the workers do not need college degrees. They just want people to go and help get oil out of the ground. It’s a great service company. People are still underrating it which is why it can go higher.”

Meanwhile, he added that two big events happened in Ukraine and Gaza in the past week and there are fears that this might break the market. Cramer thinks that Russia was not down by a lot, instead interest rates went higher at end of the week. He thinks after the disastrous Malaysian Airlines incident, people expected Vladimir Putin to come and talk about the sanctions, which did not happen. People who have waited for Putin to talk started waiting for Germany’s real sanctions.

He thinks that real companies, which does business will get hurt big time. He feels that people have become complacent on Friday which is not usual. He pointed out that many people had Thursday as buying day and thought that there would be fall on Friday. However, the drop was just 1%. Cramer thinks that the drop has to be at least 2% to shake the people up. This would let to thinking from people that they cannot let Europe, Russia and Germany market get to recession which contribute to 20% of America’s earnings.


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