Best Undervalued Companies To Own For 2015

Best Undervalued Companies To Own For 2015: Schlumberger N.V.(SLB)

Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company?s Oilfield Services segment provides exploration and production services; wireline technology that offers open-hole and cased-hole services; supplies engineering support, directional-drilling, measurement-while-drilling, and logging-while-drilling services; and testing services. This segment also offers well services; supplies well completion services and equipment; artificial lift; data and consulting services; geo services; and information solutions, such as consulting, software, information management system, and IT infrastructure services that support oil and gas industry. Its WesternGeco segment provides reservoir imaging, monitoring, and development services; and operates data processing centers and multiclient seismic library. This segment also offers variou s services include 3D and time-lapse (4D) seismic surveys to multi-component surveys for delineating prospects and reservoir management. The company?s M-I SWACO segment supplies drilling fluid systems to improve drilling performance; fluid systems and specialty tools to optimize wellbore productivity; production technology solutions to maximize production rates; and environmental solutions that manages waste volumes generated in drilling and production operations. Its Smith Oilfield segment designs, manufactures, and markets drill bits and borehole enlargement tools; and supplies drilling tools and services, tubular, completion services, and other related downhole solutions. The company?s Distribution segment markets pipes, valves, and fittings, as well as mill, safety, and other maintenance products. This segment also provides warehouse management, vendor integration, and inventory management services. Schlumberger Limited was founded in 1927 and is based! in Houston, Texas .

Advisors' Opinion:

• [By Monica Wolfe]

  Schlumberger NV (SLB)

  Manning & Napier Advisors largest position is in Schlumberger where they maintain 8,882,428 shares. Their position in Schlumberger represents 3.6% of their total portfolio and 0.67% of the companys shares outstanding. During the first quarter the fund made a reduction of -3.32% by selling 305,133 shares of the companys stock. They sold these shares in the first quarter price range of $86.16 to $97.96, with an estimated quarterly price of $90.27. Since then the price per share is up approximately 13.1%. Manning & Napiers historical holding history:

• [By Maxx Chatsko]

  Industry ties
  The company's management team has deep roots in the energy industry, specifically in oilfield services. President and CEO Gary Kolstad spent 21 years at Schlumberger (NYSE: SLB  ) before joining CARBO, while Don Conkle, vice president of marketing and sales, spent 26 years at the same firm. No wonder Schlumberger is one of the top two customers for this proppant manufacturer. Both served in various roles at the company and are well versed in the ebbs and flows of the energy industry, which should serve investors well through the rocky environment of falling natural gas drilling activity.

• [By Tyler Crowe]

  Many of the national oil companies in the Middle East do not have the experience to do EOR or production optimization on their own. This is where oil services specialists come into play. Both Core Laboratories and Schlumberger (NYSE: SLB  ) saw sizable upticks in revenue from the Middle East region. If Middle Eastern oil production trends were to continue, it would not be a stretch to see these two companies as well as other oil services grow their Middle Eastern business substantially over the next several years.

• [By Ben Levisohn]

  Schlumberger(SLB) has become the latest company to say that it will! get hit ! by Russian sanctions on U.S. companies today.

  Sterne Agee’s Stephen Gengaro and Ivan Suleiman assess the potential impact:

  Schlumbergerexpects that the economic sanctions in Russia will have a small financial impact on Schlumberger’s Russian operations. The company estimates that it could be up to $0.03 per share due to a short-term impact in operational efficiencies and costs in Russia.

  Schlumbergerremains confident that it can support its Russian clients without material disruption and will continue to work closely with its Russian customers.

  Although other large-cap service companies have exposure to Russia, we believe the effect is also minimal. Specifically, Weatherford (WFT) has noted that the Russian sanctions are not a concern as this is a very small portion of its business. In addition, this business is not impacted by the sanctions which are against Arctic and shale-related technologies. We estimate that Weatherford’s revenue in Russia is less than 3% of our estimated 2014 revenue.

  Other companies with large exposure to Russia include Nabors Industries (NBR), Halliburton (HAL) and Baker Hughes (BHI).

  RBC’s Kurt Hallead and Robert Pinkard use the occasion to assess the potential impact onSchlumberger from Iraq instability:

  We estimate roughly $600mn in annual Iraq revenue ($0.06-$0.08 in EPS) forSchlumberger with operating margins of ~20%. The situation due to political unrest is still very fluid in the country and EPS impact at this point is unknown.

  We are risk adjusting the next 6 quarters which we believe could be characterized by activity disruptions, higher security expenses and unabsorbed fixed costs.

  Hallead and Pinkard lowered their 2014 earnings-per share forecast to $5.56 from $5.64, and cut their 2015 prediction to $6.63 from $6.70. They did, however, leave their pric

source from Top Penny Stocks For 2015:http://www.seekpennystocks.! com/best-! undervalued-companies-to-own-for-2015-4.html