The GE Deal Looks Like a One-Off

General Electric (GE) took another step into the oil business Monday with its agreement to buy Lufkin Industries (LUFK) at a 37% premium at above $88 a share. While this is quite a large premium to pay in a sector that has miserably underperformed in the last year, I don't think it revalues the entire space. I still believe oil-services stocks need to be bought individually at value prices, and that time is on your side.

GE is diving more deeply into the oil patch amid a noble performance from its energy division over the last two years, ever since the company bought John Wood Group's oil-services division in 2011. But expanding GE's oil-and-gas division on the back of strong results is not the only calculus in CEO Jeff Immelt's $3.3 billion buy....397 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.