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Long Ideas

Mon
18
Nov

Schlumberger's Heading to $100

Stock Tickers

SLB CAM

Back in August, as shares of oil services giant Schlumberger  (SLB) traded at around $81 per share, I didn't see anything that would prevent the stock from reaching $90. This is even though Schlumberger -- as with rivals Halliburton and Baker Hughes -- was being hurt by (among other things) weak oil prices and soft rig counts.

Today, shares of Schlumberger, which now trades at around $93, are up 15% since my $90 target. As I've written recently in my Halliburton article, which prompted an invitation to speak with Barry Armstrong of Boston's WRKO, it looks as if the entire oil services industry has finally reached bottom. But there are also indications that even at 15 times forward earnings, Schlumberger's stock may yet be cheap.

Fri
15
Nov

Weatherford's Not as Bad as it Used to Be

Weatherford logo

Stock Tickers

WFT SLB HAL

The headline of this article were the exact words of TheStreet's Jim Cramer as he described Weatherford International (WFT) during the Lightning Round segment of Tuesday's "Mad Money." While it was not a full-blown endorsement for the No. 4 energy services giant, Cramer's reference did remind me of how Weatherford's management ruined this once-dominant company with its poor internal controls. And that's putting it mildly.

Not only has Weatherford been inundated with tax problems over the past several years, but the company has been accused of illegal dealings and corruption with countries such as Iraq under U.S. sanctions. Although there is now word that the company has reached a settlement with the U.S. government worth an estimated $253 million, it remains to be seen what the final outcome will be.

Fri
15
Nov

Halliburton's Heading to $65

Stock Tickers

HAL SLB BHI

There has never been any doubt that Halliburton (HAL), the world's No. 2 oilfield services company behind Schlumberger (SLB), has had strong operational performances. The question, though, has been whether Street expectations -- especially amid perpetual weak demand in North America -- have been too high. Given that the region accounts for roughly 50% of Halliburton's revenue, heightened pressure is on management to grow its international business.

Thu
14
Nov

Exxon Mobil's Back to Growth

Exxon logo

Stock Tickers

XOM AAPL CVX RDS

I don't want to nitpick, but you have to work extremely hard to find any disparaging points about Exxon Mobil's (XOM) business, especially when the company is second only to Apple (AAPL) in the race to be the largest company in the world according to market cap.

As much in love as I have been with Chevron (CVX), Exxon has no rival when assessing its ability to convert oil and gas into cash flow and dividends. Not to mention, its impressive history of returns on capital. But the company has been far from flawless.

Wed
13
Nov

Will Volcano Ever Erupt?

Volcano logo

Stock Tickers

VOLC BSX STJ

For all the talk about how management of certain companies will lowball guidance just to beat those expectations, some companies just can't seem to set the bar low enough. And that seems to be the case for cardiovascular imaging company Volcano Corp.  (VOLC), which just can't seem to beat its own shadow, much less defeat the likes of Boston Scientific (BSX) and St. Jude (STJ). But this hasn't been due to a lack of effort.

Volcano's top executives have never been shy about how great they believe their company is. Nor have they ever gone the "conservative route" with respect to future growth targets. The problem has been the execution. And these bold visions -- as much as I appreciate them -- have never manifested into meaningful results.

Wed
13
Nov

Amgen Looks Like a Good Long-Term Bet

Amgen logo

Stock Tickers

MDT SYK AMGN TEVA RHHBY ABBV ONXX

With so many well-managed biotech names out there like Medtronic (MDT) and Stryker (SYK), making a strong argument for shares of Amgen (AMGN) has always been difficult, given the uncertainties that surround the company's pipeline.

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