Tuesday, October 24, 2006

HAL: Who Is Celebrating?

We all like to see the underdog win. We loved to watch Seabiscuit run to victory in the movie named in his honor. We loved to watch as the humble yet charming "Jack" stole Rose away on the greatest ship ever made. These are happy endings. A happy ending is in the eye of the beholder, however.
Halliburton (NYSE:HAL) announced consolidated revenue was up $5.8 billion in the third quarter of 2006. This is increaded 19% from the third quarter of 2005. There is celebration by Dave Lesar, president of Halliburton. There was porbably celebration in the Cheney household as well. We have to ask ourselves at what cost is Halliburton stock doing so well? Would the stock be doing well without the war? The more of a mess the war becomes, the better the outlook for Halliburton stockholders. This is a grim outlook for the underdog.

No comments: