Baker Hughes Inc. (BHI)

[norecoil]

As I recall, sometime next year with no real clear time or date. The panic now is low oil prices. It won't last. Just market manipulation to close out some frackers in the Dakotas. When that's done, it will go back up and the buyout value will be restored. But, of course, this is just my opinion, I could be wrong, but I'm not.

[pitboss22]

How long until the deal is approved?

[Wanka]

Looking good. Hope this continues. Way oversold.

[KingDMC]

Yeah all part of the game. Gotta know when to cut your losses.

[JRT]

Sold out for a lose. Couldn't stand the blood any more. Will get back in when the bleeding stops.

[KingDMC]

2nd half of 2015..

[JoeFox]

The deal has already gone through

[Lord Henry Wotton]

Perhaps if you all payed attention to the industry you would know a purchase agreement between HAL and BHI has occurred.

http://www.pennenergy.com/articles/pennenergy/2014/11/oil-and-gas-halliburton-buying-baker-hughes-in-34-6b-deal.html

[KingDMC]

That's strange because all day Friday and Monday he's been hollering that the deal will never go through and that it's foolish. Guy is a joke.

[Agpilot]

I heard cramer say buy hal at these levels. Or at least he's tempted to buy.

[JRT]

Watching L2 I'm convinced it is being manipulated. Only 1 MM on bid and sell. No others even trying at these levels. Najarian said 75 yesterday was his target.

[KingDMC]

I'm telling you, Cramer screaming sell is a strong buy. Media is screaming anti trust blah blah encouraging folks to sell to big money who is buying up shares. CEO for HAL talked good things in CNBC damn near half a day. They will let it run to $78 at their pace. When news first broke this hit $74 before they pulled it down to take shares.

[JRT]

I don't have a clue on this one. Started to take my lose at 65 and decided against it. HAL CEO was on CNBC this morning and he thinks it will go thru without any issues. I'm wondering if we pulled the trigger too early since it isn't suppose to close until this time next year.

[Wanka]

Ya not liking it either. Investors must think this isn't going to go through.

[otcmoneydoubler]

BHI trading makes no sense. tempted to get out.

[JRT]

Are they going to let it run today? HAL moving up pre-market also.

[JRT]

We could both be correct. The impact of the price of oil will have on this is the value of HAL. 1.2 shares of HAL plus $19 was $78 at the open. At noon, when Najarian was talking about it on CNBC the PPS of HAL had fallen and he was using $75, plus or minus $2. People selling HAL and oil down was lowering HAL PPS. Drilling forecasts are being lowered so HAL will have less work. In 2013 we waited a month for HAL to come frac some wells I was part of in Oklahoma. Devon was the operator but they had to wait their turn like everyone else.

[Wanka]

It's really free money. Hence the arbitrage.

[Wanka]

Oil isn't impacting this in the short term I should say.

[Wanka]

Price of oil isn't impacting this. You get more than 1 share of the new company plus 19 dollars. There is no reason to buy HAL. You buy BHI then get your 19 bucks a share plus more than 1 share of the new company.

[Wanka]

Yes. Agree the specifics are much better which is why if you're in HAL you sell and buy BHI. Either way the dollar value is much higher than we are today.

[JRT]

I believe there is no sense of urgency since they have announce this will not close until the 3rd or 4th quarter. With the HAL price the biggest part of this and the down turn of oil who knows where we will end up. I'm not worried, but probably would have waited to get in if I had stopped and done more DD before jumping in. Let oil get back above $80 and hold on.

[LasNubes]

Actually, it's even better than that. BHI shareholders get 1.12 shares of HAL for each share they own of BHI plus $19 in cash per share.

So if HAL is $50 then BHI should be north of $69

[Wanka]

No problem.

[otcmoneydoubler]

thanks again.

[Wanka]

I think that's a fair question. I can't explain why it's there. I know there were a lot of talking heads claiming antitrust. But then others said there are some 50 diff companies in the space and that a combined HAL and BHI would not even be larger than shrembrolier (largest in the space). So who knows. I just know there is that arbitrage now and expect the stock to get close to filling it before anything blocks it. Both the CEO of HAL and BHI were on CNBC talking about how great the combination is so unless the govt comes in and says no. Even that would be a stretch considering all the mergers that were allowed in the airline space and that has significantly less companies that this space.

[otcmoneydoubler]

thanks. know price should be $78. just wondering why its going down with all the buying involved instead of going towards $78 like my previous ITMN buyout.

[Wanka]

Ez money basically. It's the difference between the value and the current price. So HAL is paying $78 a share for BHI. BHI is currently trading at 66. $12 arbitrage. So what you're seeing is people selling HAL and buying BHI as they still get the combined company and they make that $12 in share price. That's why a lot of people are calling this a no brainer. Arbitrage doesn't last very long. Most people expect this to get close to the 78 pretty quick. I guess it was at 74 in premarket.

[otcmoneydoubler]

what is arbitrage?

[Wanka]

Well the buyout price is $78 a share. So lots of arbitrage value here.

[JRT]

Jon Najarian on CNBC just put a $75 target BHI

[KingDMC]

Holding it down to cast fear and doubt so big money that was late to the party can load for the ride to $80. Was running pre market before they pulled it down. Was as high as $74 I believe.

[JRT]

Watching L2 it looks like to me MMs are fighting hard to hold the price down. It looks thin as hell going up to me.

[KingDMC]

Congrats to folks buying on this now undervalued gem. Ignore the Cramer bashing and anti trust fear spreading. $78 is the price. Anything less than that ain't right lol.

[otcmoneydoubler]

true. should be safest buy in town.

[KingDMC]

Anything down here below mid 70's is a steal.

[JRT]

Added @ 66

[KingDMC]

It'll bounce imo. Maybe a push down to cover? Hell maybe even profit takers and a push down to scoop shares. Too much of a no brainer buy imo.

[otcmoneydoubler]

any idea why pos is going down? why not $78?

[KingDMC]

Option buyers at the $65 strike knew what was coming. Boy oh boy is insider trading legal in 2014. Casted doubt over folks with the hostile takeover talks only to reach an agreement 2 days later substantially higher than the $67 bid Friday...

[KingDMC]

Picked up 68.57 just now. I'll see where it goes from there before going heavy.

[JRT]

I'm looking for 74/75. Oil market too volatile. Leave a little meat on the bone for the next guy.

[KingDMC]

Even though the deal closes 3Q or 4Q 2015, I expect this to trade at the value of the deal $78 and hover there.

[JRT]

Scottrade

[KingDMC]

What broker do you use to trade so early? My pre market isn't til 8 regardless of my balance.

[JRT]

Dipped my toe in at 70 when the news broke. Should have waited a few minutes. LOL

[otcmoneydoubler]

guess u made some money with the first jump. glad it worked out.

[KingDMC]

Dammit!!! Deal struck at $78

[KingDMC]

Yeah I read that earlier and thought it would run after ours but dropped instead.

[otcmoneydoubler]

good news. hostile takeover and likely bidding war. will see what happens to price on Monday.