1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Holly LaFon
Holly LaFon
Articles (6023) 

Bill Nygren's Oakmark Comments on Baker Hughes

July 10, 2012 | About:

From Oakmark's second-quarter letter:

Baker Hughes (NYSE:BHI) is one of only four global oil service companies. Over time, this industry benefits from the fact that incremental hydrocarbon reserves require increasing service intensity to develop. In the short term, however, the recent increase in North American natural gas production has caused an oversupply of gas, and this has caused exploration and production companies to reduce their drilling. We believe that this oversupply is temporary and that Baker Hughes will again be a beneficiary of positive secular trends in its industry. Blount is the global leader in the production of cutting chain for chainsaws. This is a classic “razor blade business,” as professional loggers need to replace their chains every 5-10 days. International sales, especially to emerging markets, are a large percentage of the total.


Rating: 3.2/5 (9 votes)

Comments

Please leave your comment:


GuruFocus Mobile App


User Generated Screeners


jblrseUndervalued Comanies
1946DCF ROC price change one yr
1946DCF ROC
DBrizanmga beater27Jul2016
DBrizanmga beater
DBrizanBlank 26Jul2016
DBrizanBlank 27Jul2016
DBrizanUSA high quality
DBrizanCDN high quality
DBrizancdn hi quality27Jul2016

Select portfolio(s):

  • Loading...

Why you are interested?

Your selection and notes will be stored in your portfolio.

Login to add portfolio
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK