"There we think [Weatherford] management is taking bad assets, putting them in a bucket, good assets, trying to grow them, buying back stock, reducing debt," Gabelli told CNBC's Kelly Evans. "And what happens is that we think Halliburton will want to own them at a 50%+ premium from here."
Halliburton stock fell 2.11% to $68.33 at 10:47 a.m. More than 6.8 million shares had changed hands to beat the average volume of 6,100,020. Weatherford was up 3.4% to $23.71.
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Separately, TheStreet Ratings team rates HALLIBURTON CO as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate HALLIBURTON CO (HAL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, solid stock price performance, impressive record of earnings per share growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: