On 25 February 2009, I announced Immediate Buy-Signals on oil-services giant Schlumberger (SLB: NYSE) at the $38 per share level -- and global petroleum producer BP PLC (BP: NYSE) at the $40 per share level. Since my buy-instruction, Schlumberger has made a substantial upward move to the $48 level and BP has also spiked upward to approximately $43 a share.

SLB shares have trended steadily higher in recent trading on better-than-expected Q1 results in a difficult economic environment that will likely persist throughout the remainder of 2009. The company’s strength in the international energy sector should continue to boost the SLB share-price over the coming quarters. BP also released positive Q1 results including a return to profitability after a fourth quarter loss. BP, Europe’s second largest oil company, is actively reducing operating costs and should continue to deliver positive shareholder value going forward.  

I am recommending that SLB and BP positions be held for their longer-term profit potential. Based on a projected increase in energy demand on global economic recovery, I fully expect an SLB share-price above $60 and a BP share-price above $50 next year. Maintain open SLB and BP positions; plan on protecting initial profits at much higher price-levels around the mid-point of next year.   

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