Halliburton Colgate CAPM analysis

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Halliburton & Colgate Palmolive Simple Linear Regression: CAPM Application Halliburton In 1916, Erle Halliburton learned oil well cementing during his employment with the Perkins Oil Well Cementing Company. He later used what he learned at Perkins along with the engineering and hydraulics learned while serving in the United States Navy to enter into the cementing business on his own. Halliburton initially started his business in Texas, borrowing equipment and even pawning his wife’s wedding ring to finance his company, believing he would be met with strong demand for his method. Texas showed little interest causing Halliburton to move his operation to Oklahoma. Oklahoma showed a great demand for his process leading him to register for a patent, obtain additional equipment and develop an efficient management. Within a year, Halliburton created his company called Halliburton Oil Well Cementing Company, had numerous trucks, tons of equipment, and work crews working in oil-rich areas such as Louisiana and Arkansas. Halliburton Company became well known for its reliable service and the technology it created such as the jet mixer which did away with hand-mixing of cement. By 1924, Halliburton converted their partnership (Erle and his wife) to a corporation in which they offered substantial interest in their business to other oil companies. Halliburton held 48% of it’s stock and issued another 48% to establish equal voting rights with the investors. The remaining 4% were held in a voting trust in case Halliburton had to take control of the Corporation. They patented of all new processes and devices, which primarily monopolized the oil well cementing industry. Halliburton’s design processes for well cementing, re-cementing and maintenance created relative independence from its competitors. In its ten year anniversary, Halliburton was able to mix and inject

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