$BHGE Is A Buy On $GE SellingThe worst looks to be over for $BHGE. The debt problems at its majority shareholder $GE have been an overhang on the stock for the past year. With $GE now selling, it's time to buy $BHGE.
According to investment bank Tudor Pickering, Baker Hughes (BHGE -7.6%) share weakness presents a buying opportunity following news that GE will give up its majority stake in the oil services company.
Tudor's desk says it would buy BHGE shares at sub-$22.50 and become more aggressive sub-$22, although the firm rates BHGE as a Hold.
$GE received $2.7 billion from selling shares in $BHGE. We believe smart money is buying with $GE forced to sell.
Baker Hughes, a GE company provides integrated oilfield products, services, and digital solutions worldwide. Its Oilfield Services segment offers drilling, wireline, evaluation, completion, production, and intervention services; and drilling and completions fluids, completions tools and systems, wellbore intervention tools and services, artificial lift systems, pressure pumping systems, and oilfield and industrial chemicals for integrated oil and natural gas, and oilfield service companies. The company’s Oilfield Equipment segment designs and manufactures products and services, including pressure control equipment and services, subsea production systems and services, drilling equipment, and flexible pipeline systems; and onshore and offshore drilling and production systems, and equipment for floating production platforms, as well as provides a range of services related to onshore and offshore drilling activities. Its Turbomachinery & Process Solutions segment provides equipment and related services for mechanical-drive, compression, and power-generation applications across the oil and gas industry, as well as products and services to serve the downstream segments of industry. Its product portfolio includes drivers, compressors, and turnkey solutions; and pumps, valves, and compressed natural gas and small-scale liquefied natural gas solutions. This segment serves upstream, midstream, onshore and offshore, industrial, engineering, procurement, and construction companies. The company’s Digital Solutions segment provides sensor-based measurement, non-destructive testing and inspection, turbine, generator and plant controls, and condition monitoring, as well as pipeline integrity solutions for a range of industries, including oil and gas, power generation, aerospace, metals, and transportation. It serves through direct and indirect channels. The company is based in Houston, Texas. Baker Hughes, a GE company operates as a subsidiary of General Electric Company.
As always, trade with caution and use protective stops.
Good luck to all!
BHGE
BHGE is approaching resistance, potential drop! BHGE is approaching our first resistance at 27.49 (horizontal pullback resistance, 61.8% fibonacci extension, 38.2% fibonacci retracement) where a strong drop might occur below this level pushing price down to our major support at 23.87 (50% fibonacci retracement).
Stochastic (55,5,3) is also approaching resistance where we might see a corresponding drop in price.
BHGE appraoching resistance, potential drop! BHGE is approaching our first resistance at 27.49 (horizontal overlap resistance, 61.8% fibonacci extension, 38.2% fibonacci retracement) where a strong drop might occur below this level pushing price down to our major support at 23.87 (horizontal swing low support, 50% fibonacci retracement).
Stochastic (55,5,3) is also approaching resistance where we might see a corresponding drop in price.
BHGE - Potential flag breakout Momentum long from $35.13 BHGE seems forming a potential flag formation. Mone flow rising very strongly. We think the upward momentum would continue If it can break $35.13.
* Trade Criteria *
Date First Found- January 8, 2018
Pattern/Why- Possible flag formation
Entry Target Criteria- Break of $35.13
Exit Target Criteria- N/A
Stop Loss Criteria- $32.87
Please check back for Trade updates. (Note: Trade update is little delayed here.)
