“The word is that there is a developing rig shortage,” Cramer said during Friday’s Stop Trading!.
The speculation has reached the level, Cramer continued, where people expect National Oilwell Varco will have to build more rigs to meet the demand. Investors will know whether or not that’s true when Schlumberger reports earnings on Oct. 23. Cramer expects the company’s CEO to give a status report on the industry.
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Also in the oil and gas sector, Cramer said that after hearing statements from Chesapeake Energy this week natural gas should enjoy a similar boost.
“If you’re in the natural-gas drilling business,” Cramer said, mentioning Halliburton specifically, “you’re going to have multiple years of good.”
Elsewhere in the market, Cramer called Google “a monster good story,” pointing to both the secular shift to online advertising from print and the cyclical return of ad spending overall.
“It really has replaced everything other than Apple ,” Cramer said of GOOG, “as the one that mutual-fund managers must show that they own.”
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