What does the future hold for Halliburton: growth or scandalous Enron-like collapse?
Halliburton and KBR are now separate companies, after KBR was spun off completely in 2007. Halliburton, which became a pure energy services company, was doing phenomenally wellnotably well for a company that went through bankruptcy. But today its share price has collapsed from a high of $53.91 in early July to a $17 trading range, so it is doing quite badly, hit by the double whammy of the stock market and the oil price collapse. Its future is completely tied to the oil business, which is likely to recover in the medium term, and it is legally shielded from any Iraq problems by the spin-off. KBR has taken all the military business, which continues to be profitable, as the need for battlefield services has yet to slow down. Its share price has fallen less, comparatively, from a high of about $44 in October 2007 to about $15 now. But it is very vulnerable to any significant drawdown in troop strength, and also to any major litigation or investigations. Its profit margin is razor thinjust
