Ralph Acampora's sell-short on TDW is good for a year. This means he will be right if TDW closes below Friday's closing price a year from now.
The third guest, Julius Westheimer, mentioned SLB as one of his 1998 long pick. So we have a short on TDW and a long on SLB. I'm overall disappointed that these analysts do not mention more. They are not pounding the table. Maybe pounding the table on the drillers is a thing of the past. However, maybe this is blessing in disguise. Despite the discount valuation, people are still very cautious about the drillers. This is the right recipe for contrarian investing if one has the gut and patience to invest (and not trade) in them.
Of the four guest appeared on Wall Street Week, I'm hearing a lot of mentions on Airlines and Banks. Airlines and Banks racked up >50% gains in 1997 and low crude price and low interest rate will be naturally good for these two sectors. Yesterday's Wall Street Journal has a thorough list of best and worst gainer/lowers for 1997. Guess what, the drillers have have >50% gain, right up there with the airlines and the banks. Just imagine if we did not have the last two months of plunge...
I also received the S&P 1998 outlook (dated Nov 1) yesterday. The drillers continue to fill the platinum list with many 5 stars and 4-5 fair valuation ratings. However, none of them get on the list as the 10 best 1998 plays recommended by S&P. I translate that to be the editors in S&P don't think the drillers will rack up the best gains from Nov 1, 1997 to Nov 1, 1998. But that does not mean the drillers are not presenting great value now. Two huge corrections in the past 12 months is enough to scare these editors to recommend holding the drillers for 1 full year.
Mike Berkel, I don't understand the inside of FGII, only its chart. Why is FGII taking a nap right now? Who knows? The only thing I know is the hot money never stays in a hot stock for too long. They come and go, and sometimes come back again, but sometimes never. |
