1.

Schlumberger: Schlumberger has a leading technology, a global footprint, and dominates the emerging
markets. It supplies technology, project management, and information solutions that optimize performance
for customers in the oil and gas industry. The Company employs over 83,000 people working in 80 countries
and has two business segments: Schlumberger Oilfield Services and Western Geco. Schlumberger Oilfield
Services offers a wide range of products and services to the exploration and production sector, including
pressure pumping, wireline logging, drilling services, completion equipment, and coiled tubing. Western
Geco is the world's largest seismic data-acquisition company. The Company’s website is www.slb.com.
Schlumberger’s fiscal year coincides with the calendar year.

2. Company Stats:

Market CAP: $100.85 Billion

P/E: 22.49
Beta: 1.29
Current price: $73.92
52 week range: $51.67 – 76.33
Shares outstanding: 1.36 Billion

3. Factors considered during evaluation:

 Strong fundamentals
 One of the largest technology development companies and technologically advanced with
products/services critical for oilfield operations.
 Strong management with trained and home grown executive. Executives know the
business/operations well.
 Growth opportunities with a strong demand for drilling.
 Exploring business opportunities in the Middle East. So the moratorium has not had severly
impacted the company’s bottom line.
 Ever increasing demand for oil and natural gas, specifically due to deep water moratorium in Gulf of
Mexico.

4. In the News:

 On August 27, 2010, Schlumberger announced that it completed its 11 billion acquisition of Smith
International, Inc. (SII). As a result of the deal, former Smith stockholders own approximately 12.9%
of Schlumberger's outstanding shares of common stock. 

 On July 23, 2010, SLB announced its 2Q10 financial results. Total revenue was 5,937 million
(compared with the firms’ consensus of $5,940.3 million) versus $5,528 million in 2Q09.  Net
income was 818 million (compared with the firms’ consensus of $832.1 million) versus $613 million
in 2Q09. 

 Research analysts expect the stock price to go up to $83.00

5. Recommendation to the Max Adler Investment Management Club: Schlumberger is a company with strong
fundamentals and has good growth potential.

I therefore rate the stock BUY