Gordon ReidSchlumberger Ltd.SLBCOMMENTJan 15, 2015

Likes the fundamentals and their digital operations. Recurring revenue is $1 billion. She may trim after a good run.

She added more. The under-investment in oil has been massive for very long. Good earnings and likes this long term. A long-term hold for her. People are coming around to energy. 

Up 26% last month. Venezuela and Iran saw oil prices rise and a cold snap drove natural gas prices up., but he doesn't trust this energy rally. Today, those prices fell after calming talk between the US and Iran and nat gas prices are falling.  That said, SLB has staying power.

It reports Friday. It's getting new contracts from Venezuela, but oil sits below $60, so it will be tough for SLB to report special numbers.

Liked it before the Venezuelan adventure. Oil & gas is deeply out of favour, and the oil industry admits to underinvesting in the sector worldwide. This underinvestment needs to be made up in the next 5 years. If the opportunity in Venezuela comes about, the prime beneficiaries will be the oil fields services companies. This company is probably in the best position to take advantage of that. 

With or without Venezuela, he's a real supporter of this company. This company has global reach. Yield is 2.61%.

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.