Baker Hughes Inc . (NYSE: BHI ) This large-cap oil well services company rose
to a new high late last month following a reversal from under its 50-day moving
average and our recommendation on April 25. The oil well services sector is
strong due to the need for global exploration to offset the possible reduction
in the flow of crude oil from the Middle East. BHI is uniquely situated as one
of the largest oilfield services companies and is modestly increasing its U.S.
rig count. However, it is expected to undertake a more aggressive push into
international markets. Nasdaq.com reports that insiders have been strong buyers
of the stock within the last three months a very positive indication that they
believe the stock to be undervalued. S&P has a four-star buy on BHI and
estimates that earnings of $3.76 in 2011 will rise 20% to $4.53 in 2012.
Technically, the stock broke its double-top , as expected, but is retracing the
breakout as the result of a minor uptick in the U.S. dollar and profit-taking.
For those who missed getting into BHI several weeks ago, you may have an
opportunity to buy close to its bullish support line at $70. If you have
questions or comments for Sam Collins, please e-mail him at samailc@cox.net .
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