Strictly: Drilling and oil-field services Message Board

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

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To: SliderOnTheBlack who wrote (83536)	1/5/2001 11:46:29 AM
From: Bruce L	Read Replies (4) of 95453

<<Take oil profits now.>> We will have a new president from a different party in 15 days. This has led me to an analogous thought which probably isn't original but which I will share. In January 1981, Reagan took office. Within days, defense stocks began to soar. Check the charts. It was all a question of the priorities of the new administration. We all know that both Bush and Chaney have extensive oil patch experience, Chaney of course as CEO of Haliburton. Chaney is likely to be the most influential person in the new administration. The oil patch has suffered from severe underinvestment for at least the past several years. Chaney and Bush are presumably well aware of this, although neither has said much, probably because of the political sensitivity of the subject... and because they are not yet in office. I believe the odds are good that within days of their taking office a new program to "solve" the energy problem may be announced: stuff like energy independence, opening the artic wastes to exploration,etc. The Street - which is often slow on the uptake - may suddenly discover the patch, just as it suddenly discovered the defense sector in 1981. A second thought: utilities are being wasted a la PGE & Edison. Sure, some of the high multiple NG stocks may pull back, but there are other low priced, high dividend oil stocks (e.g., my favorite, OXY) that might serve as alternative safe havens.

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