Cramer's 'Mad Money' Recap: Foreign-Stock Policy

Oil-Slip Salvage

The market witnessed a slide in Oil Services Holdrs (OIH Quote) last week because of the fall in oil prices, Cramer told viewers.

"The whole industry looked positively dead," but then Thursday it all turned around -- even as oil was plummeting, he said.

Schlumberger (SLB Quote) raised its dividend by 40% and reported a "ridiculously good" quarter, which caused the stock to rise and turned the sector around, Cramer said.

Schlumberger, "the most conservative oil-service stock in town," severed the connection between oil-service stocks and the short-term price fluctuations of oil and "turned the bears into buyers," he said.

Particularly, Cramer said, the company said three things in its conference call that gave market players visibility and the confidence to bank on oil-service stocks based on their future.

First, Schlumberger explained that the need for oil-service stocks is still present even if oil prices are down, he said. The company also reassured investors that the price of oil would not go back to the $30s and $40s and that more drilling should be needed to produce the same amount of oil.

Last, Schlumberger said it expects to see "consistent high growth through the end of the decade," Cramer said.

Based on this call, oil-service stocks, particularly international ones, are buys on weakness. However, Cramer added that he was more concerned about the domestic oil drillers.