Schlumberger Building Rapport
Schlumberger is one of a favored stocks here at TKO. We are always following this stock and the company’s movements. Looks like they are making some good moves once again, so here are some details on what they are doing. Isac Simon provides some needed information below.
A pruning at the right time
I see no reason why a $100 billion company which supplies a host of services to oil and gas E&P companies shouldn’t shed a noncore business before things become too big to manage.
Schlumberger had always been looking to shed its rigs. With Transocean (NYSE: RIG ) and Noble Corp. (NYSE: NE ) being its previous buyers in the past decade, a gradual phasing out of a business indicates intelligence on management’s part without rocking the boat.
Oil-field services are seeing a huge boost with the exploration and production industry working on many levels to meet growing worldwide energy demand. Keeping this is mind, shedding a noncore business would be one of the better things.
Schlumberger is not without competition. The advent of shale plays, as well as enhanced deepwater drilling has ensured that the likes of Halliburton (NYSE: HAL ) , National Oilwell Varco (NYSE: NOV ) , and Baker Hughes International (NYSE: BHI ) would be breathing down each other’s necks. In the end, it’s all about who bags the bigger and more lucrative contracts from E&P companies.
SLB is working hard to grow their efforts and production. This is always a good sign for investors. This would be a good stock to hold, and possibly a good stock for 2012 as well.
Quotes taken from report by Isac Simon, Read the entire article here.
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