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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: Douglas V. Fant who wrote (52535)10/7/1999 6:28:00 PM
From: Greg Jung  Read Replies (1) of 95453
 
Xon/MOB - That would make sense if xon were itself a good buy.
the stock price has performed well over the past five years but
the earnings did not perform in line - the multiples increased. So you
have good cash flow in absolute terms but you are paying growth-stock
premiums for the issue. For a short-term trade OK, somebody might
always buy it higher but there are a slew of companies in other
industries (e.g. concrete, defense, aerospace) with PEs less than 10
and a demonstrable five-year growth in double digits. Why mess with
the DOW stocks when these values are lying on the street?
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