Cramer is always telling viewers how important it is to listen to company conference calls. Investors can glean tons of information from management’s statements and the way they answer analysts’ questions. Case in point: Schlumberger’s earnings announcement on Friday, July 24.
Schlumberger, the umbrella of the oil-service stocks, reported a disappointing quarter, and that pushed down the whole group – at first. The 1 PM call gave way to a sudden spike in Transocean at 1:30. Why? Because Schlumberger’s CEO said that, of all the drilling taking place, deepwater, which is Transocean’s main business, had been “surprisingly resilient” and there was “very little actual cancellation.”
RIG investors had assumed these projects would be scrapped, Cramer said. So to find out that they were still viable meant that Transocean shouldn’t be looped in with the rest of the group. Hence the stock’s rally that afternoon. Cramer expects that move to continue through Aug. 5, when the company reports its earnings.
Whether for long-term investments or short-term trades, investors should never miss a conference call. They may be “dull,” Cramer said, but “there’s no doubt that they’re where the quick money can be made.”
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