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Gold/Mining/Energy : Strictly: Drilling and oil-field services
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To: isopatch who wrote (79457)11/19/2000 11:44:29 AM
From: Big Dog  Read Replies (4) of 95453
 
I agree to 'buy the dip', but not just on the basis of political winds.

1. More than one investment banking firm has reported that the 4th quarter is historically a 'slump' time for OSX stocks with buying resuming in Q1.

2. From my work with OneOffshore, I can share the following: Visible deep water demand has risen to 95 rigs in April 2001, up 12 from the peak seen in February this year. Once the perception takes hold that equipment is hard to come by, this process will start to accelerate again, and contracts will again become longer with longer lead times too. The signs are there that the rig market will overheat once more.

3. Fundamentals of supply/demand with regards to oil and oil services remain favorable for the sector.

I expect the year of 2001 will provide a greater percentage return for the sector than did/will 2000. Yes, there will be dips and dives, but we are used to that...and many of us enjoy the trading opportunities.

For longer term investors in the drillers one HAS to like RIG. This is a company that will dominated. It has high liquidity for the institutions and is the 'go to' name in the sector. This is not to say that others may not surpass RIG, but I think the risk/reward factors give RIG an edge as a core holding.

The Dog remains ten foot tall and bullet proof going into '2001 - The Crisis'

big
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