Last week we posted an article about how much Cramer liked Halliburton. It looks like other analysts are beginning to agree. Some even think that its undervalued. This is the case with Ivan Kitov, and here is why.
Mathematically, a share price, HAL, (we use a monthly closing price adjusted for dividends and splits) can be approximated by a linear function of the lagged difference between the core and headline CPI:
HAL = 42 – 3.5dCPI(t+t1) (1)
where dCPI(t+t1)=CC(t+t1)-C(t+t1), t is the elapsed time, and t1=0 year is the time delay between the share and the CPI change. In the original model, the CPI difference had no time lag behind the share price, t1=0, and we covered the period between 1999 and 2009. The upper panel of Figure 1 shows the original model performance between July 2003 and February 2012, with the standard model error of $4.51.
This data is a bit confusing, but it looks like others are on board with our original post in relation to Cramer’s thoughts. We like Cramer, and we like this stock. Continue research here and possibly invest.
Quotes taken from report by Ivan Kitov, Read the entire article here.
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