Cramer Calls a Bottom in Oil Service Stocks (SLB, OIH)

Main Stock Tickers: OIH, SLB

Cramer also said on tonight’s MAD MONEY that oil service stocks have made the turn for the better.  By reviewing Oil Service HOLDRS (OIH) you can see the sector bottomed.  It got killed as oil prices were sliding, but by last Thursday the stocks were basing and recovered even with oil prices lower.  He says if you listened to Schlumerger (SLB) on the conference call you’ll undertsand.  SLB hiked its dividend 40% and then the company blew away the bears.  Its shares rose while $49 oil prints were coming on oil trading.  SLB even said the new phase of exploration has only just begun.  He thinks they are the most conservative oil service stock out there.  Cramer said the bears were turned after SLB said that short term declines in commodities will mean that delays in orders and services will only be short lived; the period of cheap oil and gas have ended and investments will be up in the sector; they will continue to see consistent high growth for the decade and into next decade.  Needless to say, Cramer was very positive on Schlumberger (SLB) and the oil services sector.  SLB traded up 1.1% to $61.71 in after-hours after Cramer’s tout on it, and even the OIH shares indicated up 0.4% at $132.77 in after-hours.

Other key oil and gas service stocks he did Not note that are in thesector: HAL, BHI, WFT, NOV, SII, BJS, CAM, PGS, GRP, FTI, PDS, OII,SPN, DRQ, OIS, LSS, DVR

Jon C. Ogg
January 22, 2007