Big Drillers Look Like Big Deals Right Here

This column was originally published on RealMoney on Feb. 15 at 3:05 p.m. EST. It's being republished as a bonus for TheStreet.com readers.

So now people hate Schlumberger(SLB Quote) and are convinced that Halliburton(HAL Quote) or Nabors(NBR Quote) will have a shortfall. You have to be kidding me. These are some of the longest cycles out there.

Now, what happened is that buyers came into these stocks in January and took them up to unsustainable heights. But now the stocks are back to where I regard them as steals, even if oil goes to $50.

I don't believe people realize that the major drilling work just kicked in now. I don't believe people get that the folks at Schlumberger and Halliburton can raise rates with impunity.

I do believe, though, that what happened here is that these drillers, like health care stock UnitedHealth(UNH Quote), suffered from overexuberance on the part of Harry Lange and his new Magellan fund gig. He had to get these stocks in; now I don't know if he has any more firepower left for either UnitedHealth or Schlumberger.

But that doesn't mean you should shy away from them. I am caught here myself, having mentioned Halliburton endlessly on television and wanting so badly to buy it now.

I guess I will just have to wait.

You don't have to.

Seems very right to me.

Random musings: I feel better; the bears are about to take another run at Sears Holdings(SHLD Quote). I was thinking of calling the company and asking what the unusual trading activity was because I thought it would be up for two straight days. Now I don't have to worry, I sense the bears will mark it down right after today's buyback is complete. Nice to know, in these very uncertain times, that there are some things you can still take to the bank. ... Remember to tune in to "Mad Money" a little later this evening, 9 p.m. and midnight EST, right after the Winter Olympics coverage.

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