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June Free Stock Pick of the Month – Halliburton Company (NYSE: HAL)

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Another value investment and spring stock pick that I am extremely hot on is the oilfield & drilling services titan, Halliburton Company (Current Price: 30.25 – NYSE: HAL – Current Quote).

Trading at just under $31/share, Halliburton is becoming extremely oversold and is currently available at an excellent price. Despite the recent dip in oil & natural gas prices, worldwide energy demand continues to rise over the long haul and Halliburton is one well-run company that will continue grow.

Halliburton has dropped along with big oil recently (parallel with the recent dip in oil & natural gas prices); but this is one company that we think will rebound at a tremendous pace; due to the fact that (unlike most of the Big Oil majors), Halliburton’s earnings/profits aren’t directly attached to price of oil & gas.

They netted over 627 million in the first quarter of 2012 and they are currently selling at a price almost 50% below their 52-week high. With a PE ratio of 9.14, an EPS of 3.19, and a Market Cap of almost 29 Billion, Halliburton is currently trading at 8 times the company’s earnings.

To put this into perspective, most fortune 500 companies will trade around 13-14 times their earnings (Note: The hot Social Networking IPO company, Facebook (NASDAQ: FB – Quote) is currently trading at price 100 times their earnings).

We are predicting and shooting for a target price of $40.00 (or a 30-35% increase) in the next 2 years. Halliburton still has fantastic earnings and plenty of room to grow.  And, once Oil and Natural Gas prices begin rising again (which they will eventually do), we see Hallibuton growing at a pace faster than the industry.

Halliburton Company (HAL) is a buy up to 33.25, especially for investors who are seeking long-term, value investments and want to put their money into a well-run company with continuous profits (even smaller investors).

(Note: I remain LONG on HAL at my purchase price of 31.50).

Facebook IPO Price: Predicting the Facebook Initial Public Offering

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Facebook IPO Price: Predicting the Facebook Initial Public Offering – The IPO for Facebook has been the craze of all crazes over the course of the last few months ever since the company announced that it was going to go public. That being said, investors are still waiting to find out what the price of the Facebook IPO is going to be, and exactly when we can expect to see Facebook go up for sale. Unfortunately for Facebook, Inc., there are delays in the process, and now, we might be made to wait until June or even deeper into the summer before we have the option to buy into the company that literally changed the social media world.

What we have seen over the course of the last few weeks is that some of the top tech stocks on the market are getting battered and battered badly. The price of Apple Stock (AAPL) dipped from right around $640.00 down to as low as $555.00 in just the last month. Over the course of the last few months, Zynga (ZNGA) went from hovering in the $13.50 – $14.00 range all the way down into the $8.75 – $9.25 range in that same time span. Could Facebook CEO Mark Zuckerberg really be balking at these recent drops of late and wonder whether the timing is anywhere near right for his company’s IPO?

It doesn’t take a genius to know that the horrors in the tech sector on the stock market of late really make this a bad timing for an IPO. That being said, the acquisition of Instagram for $1 billion may or may not encourage future investors, and there is a going to be a heck of a lot of discussion about that both behind closed doors at Facebook and in the public by financial aficionados.

Facebook has stood the test of time, and at some point in the next several months, it will have its 1,000,000,000th member. Those members are really the only product that Facebook has to market at this point, and the truth of the matter is that the likelihood is there that there will be something that ends up coming in at least challenging the behemoth company. Very few have been able to stand the test of time in the constantly growing world of the internet, and it is very suspect to us as to whether Facebook, Inc. will really end up being worth it or not.

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What we do know is that the predicted price for Facebook’s IPO is going to be on the low end around $30.00 per share, and at the high end around $40.00 per share. That being said, there are plenty of companies out there that have a heck of a lot more value to them than Facebook will, as the company is only worth about $100B in total. Of course, the Instagram purchase might ultimately be encouraging the market to buy, and that might make the IPO a bit higher than we initially thought. Facebook buyers should be abound, but the prudent buyer might just be looking for a short-term profit. We just can’t see holding onto this Facebook stock beyond perhaps $50.00 per share, and even that might be far too much to hope for.

In the end, this is going to be the most dangerous stock on the market when it finally does get out there, and we know that it is going to be a heck of a gamble to come right in with it. Facebook is one of the most powerful entities in the entire world right now, but it wasn’t all that many years ago that MySpace was the social network of choice. Inevitably, something is going to come around at some point that makes Facebook less worthwhile, and when that day happens, investors that are buying in at this IPO price in the $30s or $40s might really find themselves on the short end of the financial stick.