Baker Hughes (BHI) shares are cheaper still, at 8.7 times estimated earnings for 2009; its shares have fallen nearly 40% in the past year.

Cramer: Getting to the Bottom of Natural Gas: Hear Jim Cramer's latest take on this volatile energy sector.

Click here to watch the video.

Adami said there are real stories in Baker Hughes(BHI) and Schlumberger(SLB) and it feels like the hedge funds have blown-out of these names.

The company, based out of Houston, supplies a range a products to oil and natural gas companies. Baker recently announced that its board approved a plan to repurchase $1 billion in common stock.

This new buyback comes on top of the companies previous repurchase plan. As of July 24, 2008 BHI had authorized remaining to repurchase about $1.246 billion.

The company also announced that it increased its quarterly dividend by 15% to $0.15 cents a share from $0.13 cents a share.

On Tuesday, July 22nd, the company reported second-quarter income that jumped 8.4% to $379.3 million, or $1.23 a share, from $349.6 million, or $1.09 a share in the same period last year. Revenue for the quarter was $3 billion, an increase of 18% from the previous period.

After the stronger-then-expected second quarter results, Jefferies & Company lifted their price target on BHI from $105 to $112. Jefferies has a buy rating on Baker noting attractive valuation and visible growth in North America and internationally.

The company, based out of Houston, supplies a range a products to oil and natural gas companies. Baker recently announced that its board approved a plan to repurchase $1 billion in common stock.

This new buyback comes on top of the companies previous repurchase plan. As of July 24, 2008 BHI had authorized remaining to repurchase about $1.246 billion.

The company also announced that it increased its quarterly dividend by 15% to $0.15 cents a share from $0.13 cents a share.

On Tuesday, July 22nd, the company reported second-quarter income that jumped 8.4% to $379.3 million, or $1.23 a share, from $349.6 million, or $1.09 a share in the same period last year. Revenue for the quarter was $3 billion, an increase of 18% from the previous period.

After the stronger-then-expected second quarter results, Jefferies & Company lifted their price target on BHI from $105 to $112. Jefferies has a buy rating on Baker noting attractive valuation and visible growth in North America and internationally.

15%

The Schlumberer earnings should bode well for outfits like Halliburton (HAL), ConocoPhillips (COP) and Baker Hughes (BHI) which also provide technology, equipment and other services to help oil and natural gas companies find and tap reserves.

Baker Hughes (BHI) was upgraded from Neutral to Buy at Merrill Lynch. $105 price target. Upgrade is attributed to continuing growth in the international sector and a recovery in the North American market.

JIM TOLD ME SO. I SNAGGED IT @ $67 AND I'M LOVING LIFE RIGHT NOW.

3 Stocks I Saw on TV
Dan Fitzpatrick examines three stocks viewed on Fast Money. Today's stocks include Baker Hughes, Chesapeake and BJ Services.

Click here to watch the video.

same