What's the Deal With Schlumberger?

Cramer wonders why First Boston downgraded the stock, especially because he thinks the Transocean combo is a good one.
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One man's SLOB is another man's Schlumberger (SLB) - Get Report. This morning, Credit Suisse First Boston downgraded SLOB, saying something about its P/E that sounds like gibberish to me because I am long. But Donaldson Lufkin & Jenrette upgraded Schlumberger for making this Transocean (RIG) - Get Report deal, even though it is slightly dilutive.

Deals. Can't live with them, can't live without them. But the rules about deals are stark on Wall Street: You can do creative, dilutive deals that can be sold to the Street

only if you are on the Net


But if you try to do something creative and sensible, as I thought Schlumberger did -- and I bought the stock because I like the combo -- but it doesn't pay off in year one, you get downgraded.

I am hoping the market sends First Boston a message and SLB goes up. I would like to think that a good deal is a good deal off the Net, even if it impacts earnings negatively for a few quarters.

The greatness of the game: We will know the winner in 30 minutes.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Schlumberger. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at