Schlumberger Ltd. (SLB-N)

Was a spec buy. He'd rather buy SLB, because with more drilling, he wants to be in the picks and shovels.

Sold it. It never became a full position. He bought it because of its last quarter and on deregulation. But oil companies won't drill that much, because it lower the price of oil. 

They report Friday. Rising prices aren't enough to turn around SLB, which has been in the dumps for a year and 4 months. But he expects a positive forecast from them, given drilling optimism.

Oil is simply not doing well.

Liked their conference call where they told you what was going wrong. Will pop if there's a flare-up in the Middle East.

Earnings beat, but revenues miss. She sighs. Shares rallied into the print. EBITDA was good and free cash flow beat expectations. Digital was up 25% YOY. Trades at only 12x forward PE, the best oil services stock. 

They report Friday. Shares haven't rallied despite the bounce in oil prices.

Best of breed, but shares have not gone up along with oil prices.

Is down 9% in the last 3 months. It's too expensive to sell now. 

Neither. Look at the 10-year charts, both lower today than 10 years ago. When flush with money, make acquisitions; then when things turn nasty, take write downs. Result is less than zero value creation for shareholders. The only people making money are the executives.

Their quarter disappointed, though he likes the company. Even Haliburton did better. He prefers Cotera.

A good company, but shares have run up a lot. Wait for a pullback.

He keeps an eye on it and likes it. Keeps watching it. Prefers them a little to HAL. But he won't buy it because of the oil/has sector.

Last Friday they reported a slight top and bottom line beat with revenue up 14% YOY and free cash flow up 167% YOY. Strength lies in their international business, with 10 straight quarters of double-digit growth. Guidance was encouraging, though they seldom say much, driven by this international business. Also, they raised their dividend 10% and will increase buybacks, which will absorb their higher-than-expected capex.