NEW YORK (TheStreet
said that they were going to acquire Lufkin Industries
for almost three billion dollars. Lufkin is an oil service company that makes lifts. Now you might want to know what a lift is. A lift is not a lift like a car lift, it's a pump and it's helping to pump the stuff out of the ground and get it to the surface. GE has a few years ago said that they wanted to go way more industrial and they've been shedding the assets that weren't industrial and this is part of this whole oil production servicing side.
Right. I mean GE is such a big company that we tend not to think 'Well, wow. What are they?' We know that they're in healthcare.
And we know that they're in engines, right. We know they're in aircraft but they've made a huge bet on oil and gas, particularly shale in this country and Mad Money visited the Baccan and we did the whole thing with the donkeys in the background. Those are the things that go up and down and up and down. They nod and that's Lufkin. Now Lufkin is really the only game in town for this business and they've done a remarkable job. I know our friend Dan Dicker, energy expert, said to me 'Listen Jim, it's one off.' I like that understanding, it's one off but GE itself is anything but one off when it comes to oil and oil and gas. If I were Halliburton
or Baker Hughes
, if I were Neighbor's or if I were not Weatherford
because I don't think Weatherford's well run enough but that's been going higher, FMC Technologies
. There are all sorts of companies that GE could buy to make a statement in this sector. I think that this is the first time I've ever seen something...we were recommending this in Mad Money as a takeover because we'd recommended Garden Denver
and then we said we had liked Robinson Myers and then suddenly this one. Debra, what I think is most important is that if you go to LinkedIn
, there's a piece by Jeffery Immelt, April third, and in it the CEO of GE talks about that this is the future for GE's business. They're taking their money out of entertainment, taking less capital from...putting less capital in commercial and putting it here. They will be, if I am right, the premier energy company, energy service company after Schlumberger
in the world in a couple more acquisitions.