Thean and all: After watching the action the last few days on wall street, with tumbling quarterly's in many of the old solid sectors, I find myself thinking that the "money on the run" will be looking for new territory to capitalize.
The drilling sector has moved upward inspite of the downtrend. Value is further supported by low p/e's, seemingly low share prices, and relative support, if one follows the canslam technique as promoted by IBD.
The drilling sector future is promising and appears lucrative. Even though the stochastics are indicating oversold, this market may simply stall bouncing momentarily within present price movements, then, supported by the displaced money coming out of the blue chip/tech sector, take off again.
I also think that although deep drilling is the "sexy" sector for drillers at this moment, it will prove to be fraught with problems and costs, and that the old shallow water drillers, who demonstrate low p/e, will prove reliable, predictable, steady and therefore well rewarded.
That's my humble opinion, and of course, time will tell. Any other views?
Rose |
