Each quarter, we carefully analyze the results and subsequent conference calls from the four major oil-field services firms, with a particular emphasis on Schlumberger’s earnings and commentary.

By virtue of the size and scope of its operations, Schlumberger offers a valuable bird’s eye view of both bigger-picture trends and the latest developments in key end markets when it reports its rsults. Better still, the firm’s senior management isn’t shy about commenting on emerging opportunities and providing analysts with plenty of color during conference calls.

In this issue, we review Schlumberger’s second-quarter results and the bullish implications for our bets on the marine seismic services industry, subsea equipment and deepwater contract drillers.

We also analyze quarterly results from the coal industry to glean the latest developments in the domestic and international markets.

In This Issue

The Stories

1. Second-quarter results from Schlumberger (NYSE: SLB) and the other major oil-field services companies confirmed that the supply-demand balance in international markets continues to tighten, with business lines related to deepwater exploration and development driving growth. See The Schlumberger Effect.

2. Second-quarter earnings season is in full swing. Here are some of the key takeaways from our Portfolio holdings’ results and management-hosted conference calls. See Earnings Cavalcade.

The Stocks

Schlumberger (NYSE: SLB)–Buy < 100
Petroleum Geo-Services (Oslo: PGS, OTC: PGSVY)—Buy < USD17.50 in Aggressive Portfolio
SeaDrill (NYSE: SDRL)–Buy < 45 in Aggressive Portfolio
Ensco (NYSE: ESV)–Buy < 60 in Growth Portfolio
Pacific Drilling (NSDQ: PACD)–Buy < 11 in Aggressive Portfolio
Linn Energy LLC (NSDQ: LINE)–Buy < 40 in Growth Portfolio
Penn Virgina Resource Partners LP—Buy < 29 in Conservative Portfolio
Peabody Energy Corp (NYSE: BTU)–Buy < 45 in Growth Portfolio