Cramer: Schlumberger Is 'High Quality'

Schlumberger is down Friday after the company warned of potential troubles in the near future. The credit crunch will “undoubtedly” have an effect on business, CEO Andrew Gould said, and a slowing global economy most likely means a “slowing” in customer spending.

But Cramer defended the company during today’s Stop Trading!, saying Schlumberger is a “high-quality company” whose stock is the lowest it’s been in three years. Cramer pointed out that Gould seemed positive on at least the first half of 2009 and the rest of the drilling stocks are up.

“I just simply don’t believe that call was as negative as people are making it out to be,” Cramer said.

Regarding Halliburton, though, he seemed a bit more cautious. One area of the business that Schlumberger said would be weak is North American drilling, and that means HAL. So Cramer “didn’t feel great” after the Schlumberger call, but he did note that HAL is cheap right now. And with talk of consolidation in the industry, Cramer’s not sure why anyone would sell Halliburton.

Peabody Energy’s strength should transfer over to Joy Global, Cramer said. BTU reported a better-than-expected quarter Friday, and Cramer thinks the good results could put a bottom in JOYG, which has been declining steadily since early September.

Should investors follow hedge-fund legend Steve Cohen for the short-term and Warren Buffett for the long? Watch the video for Cramer’s answer.

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