Before selecting a stock, there are a number of things that you need to consider in order to ensure that you are buying the stock of a high-quality company whose shares are poised to grow in value over time. Some of these concerns include what the company does, its competitive advantages, valuation, dividend payouts and sustainability, and earnings consistency.
Another important thing that you need to consider is the financial condition of the company in question. You want to know if the company is able to continue paying its bills, and how much debt it carries. The balance sheet is one of the most effective tools that you can use to evaluate a company's financial condition. In this article, I will discuss the balance sheet of Halliburton (HAL), in order to get some clues as to how well this company is doing.
I will go through the balance sheet,
Ah, those unfortunate energy bulls. Their returns over the last few years have been nothing to write home about.
As shown by the chart below, the relative performance of the energy sector against the market has been topping out for the last few years (blue line), though bulls can be consoled by the fact that the long-term relative uptrend that began in 1999 remains intact. From a technical perspective, there is a decent chance that the relative decline could be halted at the 50% Fibonacci retracement level, which roughly coincides with the long relative uptrend that began in 1999.
(click to enlarge)
What's more depressing for energy bulls, the press and blogosphere has been full of bearish stories about oil prices, largely because of the shale boom seen in the US: