We recently published an article titled, Jim Cramer’s Latest Lightning Rounds: 15 Stocks to Watch. In this article, we are going to take a look at where Schlumberger Limited (NYSE:SLB) stands against other stocks discussed by Jim Cramer during the latest lightning rounds.
Recently on Mad Money, host Jim Cramer stressed the necessity of staying updated on economic indicators, government actions, and industry developments to make informed investment choices. He emphasized that speculation should be approached with the mindset of a “pro” rather than a novice. Cramer mentioned that while he does not oppose speculation, it must be done with an understanding of the risks involved. He remarked:
“Otherwise, if things go south, you’ll be caught playing a game of endless musical chairs, led by me getting a huge number of lightning round calls about some very sketchy outfits that all belong to what I call the hot money segment.”
Cramer provided insight into this hot money segment, describing it as a segment with limited capital that cannot satisfy all the demand. He specifically pointed to China, explaining that the current policies from the Chinese government have created an environment where, for the moment, it seems nearly impossible to incur losses. He elaborated that the government is actively subsidizing stock purchases and promoting buybacks and insider buying through liquidity support.
It has led to significant price movements in the market. When considering investments in Chinese stocks, Cramer advised caution, suggesting that investors should focus on companies capable of withstanding market fluctuations. He pointed out that many people are tempted to buy Chinese auto stocks, especially given their impressive advancements in electric vehicle technology. Nonetheless, he warned that the electric vehicle market is becoming increasingly saturated.
Cramer added that with the limited amount of hot money available, speculative stocks now face competition from cryptocurrencies. He expressed his belief that Bitcoin and Ethereum are the only cryptocurrencies with a good chance of recovery, dismissing most others as “junk”.
He shared that he only invests in these two digital currencies and avoids common stocks tied to the cryptocurrency market, deeming them too risky compared to Bitcoin and Ethereum, which benefit from exchange-traded products backing them. Cramer concluded by mentioning that speculation should be done wisely, saying, “With any speculative trade, there’s a beginning and an endpoint.”
Our Methodology
For this article, we compiled a list of 15 stocks that were mentioned by Jim Cramer during the lightning rounds of his episodes of Mad Money on October 4 and October 7. We listed the stocks in ascending order of their hedge fund sentiment as of the second quarter, which was taken from Insider Monkey’s database of more than 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Cramer Says Schlumberger Limited (NYSE:SLB) Is ‘The Best Of Breed’
Schlumberger Limited (NYSE:SLB)
Number of Hedge Fund Holders: 67
Schlumberger Limited (NYSE:SLB) is a Texas-based company that delivers a wide range of technology and services aimed at advancing hydrocarbon production and field development. It offers carbon management and the integration of energy systems. The company focuses on various facets of the energy industry. Its services include reservoir interpretation, well construction services, and subsurface geology evaluations, all of which are essential for efficient exploration and production processes. The company supplies crucial drilling fluids and equipment, as well as artificial lift production systems that facilitate extraction efforts. Cramer said:
“SLB has not gone up nearly as much as I would’ve expected. Given the fact that oil’s up, I would buy the stock right here. It is the best of breed.”
Schlumberger’s (NYSE:SLB) management has highlighted the trend towards deepwater developments, particularly in regions like Latin America and Africa, where the majority of future oil capacity expansions are expected.
Projections by management for offshore final investment decisions (FID) suggest a substantial growth trajectory, with estimates reaching $100 billion in 2024 and a similar figure in 2025, driven by rising interest in high-yield, low-carbon assets.
On September 30, Schlumberger (NYSE:SLB) announced the formation of Turnwell Industries LLC OPC, a joint venture with ADNOC Drilling Company and Patterson-UTI. Through the JV, the companies aim to harness cutting-edge innovations in artificial intelligence, smart drilling design, and advanced completions engineering.
The joint venture will prioritize the acceleration of the United Arab Emirates’ unconventional oil and gas initiatives, with an ambitious plan to complete an initial 144 wells by the end of 2025. Within this partnership, Schlumberger will contribute integrated drilling, stimulation, and completion services, alongside project management and digital capabilities, to support the venture’s objectives. ADNOC Drilling will hold a 55% majority stake, while Schlumberger will have a 30% stake and Patterson-UTI will own the remaining 15%.
Overall, SLB ranks 1st on our list of stocks discussed by Jim Cramer during the latest lightning rounds. While we acknowledge the potential of SLB as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SLB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Read Next: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
Disclosure: None. This article is originally published at Insider Monkey.