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Halliburton: Buy or Sell?

Mad Money adheres to a “they report, Cramer decides” approach to journalism. So when two analysts disagree about whether a stock should be bought or sold, Jim has the final say. At least on this show.

Such was the case with Halliburton on Tuesday. While Goldman Sachs upgraded HAL to its “conviction buy” list, J.P. Morgan downgraded the stock to neutral from buy. The former said this oil services firm will lead an early-cycle recovery in North American drilling, pushing the share price higher.

But J.P. Morgan seemed less enthusiastic about business on this continent, and predicted a possible 3% to 5% decline in HAL’s margins. Not to mention, a bottom in the North American rig count means a bottom in Halliburton’s earnings, the full effect of which might not be felt until 2011. Then there’s the fact that new contracts might not appear quickly enough to replace those expiring this year, creating a gap that would further hurt business.

Of course, Cramer has his opinion. What does he think? Is Halliburton a buy or a sell? Watch the video for that.

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