I sold my shares of United States Oil (USO) on Jan 4 at $48.81. This compnay is basically an ETF (Exchange Traded Trust) that tracks the price of oil. Oil seems to be on a downward trend which is great when you go to fill up your car but not for an investment in USO. I booked a loss of 9.5 percent and am sticking with my rule of never losing more than 10 percent in any one investment.
To replace USO I bought Halliburton (HAL) on Jan 8th for $29.37.
The stocks 52 week range is $26.33 to $41.99 so I'm buying in at the lower part of the range. It has a P/E of 11.03 and a dividend of 1.1 percent.
Halliburton Company provides various services, products, maintenance, engineering, and construction to energy, industrial, and governmental customers worldwide. It operates in six segments: Production Optimization, Fluid Systems, Drilling and Formation Evaluation, Digital and Consulting Solutions, Government and Infrastructure, and Energy and Chemicals. Halliburton was founded in 1919 and is based in Houston, Texas.
I like the broad diversification of this company. It also helps that this is one of Jim Cramers (Mad Money) top three picks for 2007. Instead of betting on a pure oil play like USO this stock gives me exposure to the Energy market but not just to the commodity.
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