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Fast Money

No. 3 - An Un-American Trade?

Is Halliburton's Move to Dubai Un-American or Just Capitalism at its Best?

Few companies struggle with negative public perception the way that Halliburton (HAL) does. (That’s in large part due to its White House connections and possible overcharging on government contracts.) Over the weekend, another PR problem, the nation's largest oil services firm said it was moving its corporate headquarters overseas, to Mideast financial hub Dubai. According to Halliburton, it's merely going where the oil is, but conjecture suggests the move could be to avoid taxes? It begs the question, is Halliburton an un-American trade?

Eric Bolling asks, since when is making money un-American? Dubai has no corporate taxes (although they’re talking about a value added tax on real estate.) Eric says this is a great move. It’s a great place to be.

Dylan Ratigan asks why does the place where the CEO lives and works impact the way in which they access oil?

Tim Strazzini says it’s the primary theater of the product. Their biggest customers are right there in the region. They’re moving right into the hub of the entire (oil) world.

Tim says he’s long Haliburton (HAL) but the play is Karelian Diamond Resources Plc (KDR) and Hydril Company (HYDL). Tim says those companies are really about people getting into the vertical integration business (think parts and equipment.) This is a takeover story.

Tim also says Pride International (PDE) and Noble Energy (NOBL) are also buys because they’re in great cash positions and have a great footprint globally. Tim says these are names likely to be bought.

Eric Bolling says the best trade is Halliburton and Schlumberger (SLB).

Questions? Comments?

Trader disclosure:
On MAR 12, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders.
Bolling Owns (BP), (DIS), Gold, Silver, Soybeans I s Short Corn; Macke Owns (JWN) Strazzini Owns (EWG), (STM), (SNDK), (VZ), (WMT), (HAL), (MER), (YHOO),(T)