Oil-Service Sector Looks Ripe for a Deal

We still haven't seen the big deal in the oil-service patch that I am expecting, even though the rig count is going up big.

We have thought that Nabors (NBR - commentary - Cramer's Take) would do something big, and it hasn't happened yet. GlobalSantaFe's (GSF - commentary - Cramer's Take) interested in doing a big deal. We know they'd be willing to sell. Halliburton (HAL - commentary - Cramer's Take) has made it very clear that it wants to do some buying to diversify away from the U.S.

In the meantime, natural gas is high and oil's not going down. The earnings -- despite the way-too-cautionary article I read in the Journal about the cohort -- should be way good. If you believed, as this article indicated, that the earnings would make you shudder, you would have missed five quick ones in Lufkin Industries (LUFK - commentary - Cramer's Take), by the way. (And don't forget the Schlumberger (SLB - commentary - Cramer's Take) April $75 calls for a Friday earnings report that could be bountiful.)

The group has big moves and then rests. That's where we are right now. Hard to imagine we won't see a deal real soon in this group. It's just too hot.

Random musings: Weak dollar helping lots of stocks; check out the United Technologies (UTX - commentary - Cramer's Take) conference call. ... Rails still on fire and I still like Union Pacific (UNP - commentary - Cramer's Take). ... Still a believer in the April 125 Toyota (TM - commentary - Cramer's Take) calls for a move tonight in Tokyo.

At the time of publication, Cramer was long Halliburton, Union Pacific and Toyota.

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