Im hearing Halliburton is a steal right now
There are a lot of probable steals. . . just depends on your appetite for risk.
Halliburton won't be going bankrupt any time soon, so it's safer than a shale play like EP Energy. But a Halliburton is trading at 2x book value, which isn't unreasonable, but is a little more standard in the industry than what's happening in shale.
EP Energy and so many other shale plays are heavily burdened by debt. EPE, for example, is trading at around 0.25 book value. In the high 3s per share and book value of around $17 per share.
At this point, you either believe a shale play will go bankrupt or it will recover. I think EPE is heavily indebted, but debt doesn't mature for a few years and they're almost fully hedged this year and next with some hedging in 2017 as well. Continue to increase operational efficiency and reduce capex. I don't think they're going bankrupt in the near future, so I'm going balls deep in LEAPS to significantly reduce my cost basis. The PE firms backing EPE are in for about $10 a share. Maybe they sell the company, but it won't be near the prices it's at now. Think it's a no brainer right now.
Find a shale play you won't think will go bankrupt because they've all been massacred. That's where your steal will be and you will clean the fukk up by either buying and holding long term or buying LEAPS.
