Investopedia: Baker Hughes Shows That It Can Always Get Worse

Energy services giant Baker Hughes (NYSE:BHI) provides a good example of something I've often said about commodity-related companies - calling/playing a bottom in the cycle is always risky, because these companies have a way of finding new peaks and carving out new troughs that are higher/lower than you think they could be. While Baker Hughes does seem undervalued today, and should be well-positioned to benefit from a recovery in North America and ongoing growth outside, it takes a little faith and even more appetite for risk to buy today on that thesis. By the same token, if you wait for definitive proof of the turn, you'll leave a meaningful amount of capital gains on the table.

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