overlooked, undervalued

% change adequate.

We get a terrible number from Transocean (RIG), something I didn't expect, and a bullish forecast from Baker Hughes (BHI)! How can that be? Deep drilling's not supposed to be hurt, and shallow drilling and land drilling -- BHI's bailiwick -- is supposed to be crushed by this moment. I see that RIG had spec cancellations, something that they said was not going to occur. I see nowhere why BHI can be bullish, except that the natural gas companies might be doing more drilling than I thought.

"Or even look at Baker Hughes (BHI) for exploration."

"Plus, we crave some analysis that is positive here about the drillers because Baker Hughes (BHI) says that the rig count has been cut in half, and we know that natural gas has been cut by two-thirds, yet the Oil Services HOLDRs (OIH) is screaming." ("Oil Reports Are Slim and Slippery," 4-29-09)

NPR

Baker Hughes (BHI) shares are cheaper still, at 8.7 times estimated earnings for 2009; its shares have fallen nearly 40% in the past year.

Cramer: Getting to the Bottom of Natural Gas: Hear Jim Cramer's latest take on this volatile energy sector.

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Adami said there are real stories in Baker Hughes(BHI) and Schlumberger(SLB) and it feels like the hedge funds have blown-out of these names.

The company, based out of Houston, supplies a range a products to oil and natural gas companies. Baker recently announced that its board approved a plan to repurchase $1 billion in common stock.

This new buyback comes on top of the companies previous repurchase plan. As of July 24, 2008 BHI had authorized remaining to repurchase about $1.246 billion.

The company also announced that it increased its quarterly dividend by 15% to $0.15 cents a share from $0.13 cents a share.

On Tuesday, July 22nd, the company reported second-quarter income that jumped 8.4% to $379.3 million, or $1.23 a share, from $349.6 million, or $1.09 a share in the same period last year. Revenue for the quarter was $3 billion, an increase of 18% from the previous period.

After the stronger-then-expected second quarter results, Jefferies & Company lifted their price target on BHI from $105 to $112. Jefferies has a buy rating on Baker noting attractive valuation and visible growth in North America and internationally.

still waiting

same