If you are looking to invest in the oil stocks now that oil’s low price is making some companies vulnerable, you might want to look at Baker Hughes (NYSE:BHI). This oil services giant is in the process of possibly being bought out by Halliburton (NYSE:HAL). Halliburton is one of the biggest oil services players in its global industry. In fact, the only company bigger than Halliburton in its space is Schlumberger.
If you buy into Baker Hughes now, it might be a very inexpensive way of getting a chunk of Halliburton. Halliburton is looking to acquire Baker Hughes for $34.6 billion. If the merger goes through, you get a chunk of Halliburton shares. The best part of all this is that Halliburton is expanding by buying Baker Hughes. It is using the current weakness of the oil market to consolidate its position.
This is the strategy of a winning company. This is a company that looks at adversity and sees it as a giant opportunity. Make no mistake about it, the current softness in oil prices has made many oil sector companies weak and vulnerable to takeovers. By consolidating its position, Halliburton is positioning itself to a strong upward growth when oil stabilizes.
It is becoming increasingly clear that the days of $100 per barrel oil are long gone. Still, there will always be a need for oil in the foreseeable future. By consolidating and repositioning itself for greater opportunities in the future, Halliburton is a great buy. One of the best ways to buy into Halliburton is not to snap up the stock directly, but through Baker Hughes stock.