The turmoil in the markets makes it too easy to justify selling any stock these days. Yet, while his own panic never helps an investor, it's still a good idea to play devil's advocate with investments.
Consider oilfield services outfit Halliburton
Here at The Motley Fool, we like to consider both the good and bad sides of an investment. Below, I've highlighted three of the main bearish arguments on Halliburton. Be sure to read the bullish side as well, and then weigh in with your own comments below or rate Halliburton in CAPS.
1. Weak earnings
Although Halliburton beat earnings expectations and saw improvement over the second quarter, it still experienced a drop in third-quarter earnings, joining a list of others like 800-pound gorilla Schlumberger
2. Pricing pressure
Despite better recent financial results, oilfield services companies like Weatherford
3. Fragile market
The price of oil has regained some of its strength after its dramatic fall last year, but Halliburton feels that with high storage levels and other weak fundamentals, current crude prices still make for a difficult environment. It still sees weak demand coming from its customers, with many still spending cautiously, leaving near-term prospects anything but certain.
Of course, Halliburton has thrived despite past obstacles. But the question of its future return to investors is why CAPS is such a great resource to augment your own analysis. To see details of what CAPS members are saying now about Halliburton, just click on over to Motley Fool CAPS and have a look. Or add your thoughts directly to this story in the comments box below.