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$101.88 -1.48 (-1.43%)
7/3/2008 1:02 PM

Schlumberger Limited (ADR) (SLB)

CAPS Rating:
*****

An oilfield services company, supplying technology, project management and information solutions that optimize performance in the oil and gas industry. It consists of two business segments: Schlumberger Oilfield Services and WesternGeco.

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Recs

4

Avatar wcwhiner (98.52) Submitted: 3/21/07 4:48 PM : Underperform Start Price: $66.26 SLB Score: -64.24

Reload after a loss. See canned "accuracy" rant at http://caps.fool.com/Blogs/ViewPost.aspx?bpid=4381&t=0100160...

I still see energy as vulnerable, so I have started closing and reentering energy-patch names. Short energy has been one of my worst ideas this last half-year, but I can't get away from the idea that a growth slowdown (especially in the US) has to affect the rest of the world and hence crimp margins. So far, so bad, but I'm sticking with the trade until I see global economic production turning up again.

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Avatar Gtrinvestor (99.96) Submitted: 7/31/07 6:15 PM

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I think you are on to something in regards to entities like Exxon and other full service oil companies that are more consumer facing. The price of oil will certainly come down eventually and due to the fact that they are having to pay more for each additional barrel of oil they get (can you say margin squeeze)

However, your bet here against oil service providers (and deep water drillers you have bets against as well) may not be so well placed, as they are the ones benefiting from Exxon's inability to get enough of the black gold to the market.

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Avatar proudlyfoolish (92.77) Submitted: 2/08/08 1:09 PM

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That's the nature of the oil beast. My energy holdings are in the service providers to the majors. They have done me well until recently and even then they are just off where for me (my portfolio) I consider norm. They have room to move up when the time is right and I will use the downside to carefully strengthen my positions.

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