Here's How Baker Hughes Will Benefit From A Merger It Never Wanted In The First Place

Shares of Baker Hughes Incorporated BHI were trading lower by around 4 percent early Monday afternoon even though the company stands to collect $3.5 billion after its mega-merger with Halliburton Company HAL was called off. Related Link: Halliburton Cites Regulatory Approvals, Industry Challenges In Terminating Baker Hughes Merger Carl Weinberg, High Frequency Economics' chief economist, said during a segment of 'Bloomberg Surveillance' that Baker Hughes can move forward with planned investments in the oil space, even though "it is not a good time from the point of view of commodity prices." Moreover, from a strategic point of view, it will never be cheaper for Baker Hughes to invest in its projects than it will be right now. Jeff Degraaf, chairman at Renaissance Macro, was also a guest on the segment. According to Degraaf, the overall sentiment on oil is "too bullish." He added that large oil speculators are currently holding positions "we haven't seen in years." "What I think is most telling is commercials are selling forward every opportunity they can get," he added. "They are taking $40-plus oil and selling it forward as fast as they can. This doesn't tend to be bullish in the long term."