Cramer Recommends Smith Int'l (SII) as Cleaner Technology Play

Jim Cramer recommended shares of Smith International (NYSE: SII) on last night's Mad Money, saying he likes the company as it is a play on fluid drilling, which he calls "the lifeblood of drilling."

As Cramer believes offshore drilling is the future of crude, he notes that countless politicians have blocked offshore drilling as it is often viewed as environmentally unfriendly. Recent technology advances, however, have made offshore drilling much cleaner and safer in past years. One of these technologies is fluid drilling. According to Cramer, Smith uses fluids to "cool and lubricate drill bits and keep drill holes stable."

Cramer points out that Smith operates in a "drilling fluid oligopoly", meaning it competes with only a few other companies in this industry. Further, Cramer said he likes the company's 15 million share buyback, as the authorization could keep shares buoyed in the current market environment.

Smith International, Inc. provides products and services to the oil and gas exploration and production industry in the United States and internationally.

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