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Gold/Mining/Energy : Strictly: Drilling and oil-field services
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To: marc chatman who wrote (23399)6/4/1998 12:08:00 PM
From: Czechsinthemail  Read Replies (1) of 95453
 
Marc, You're right that the rising or falling of the tide tends to float or sink all boats in this sector. I've used that tendency to trade some--selling shares in those rising fastest to move money into similar companies that are lagging.
But the marginal impact of oil price increases and decreases fall unequally. The land drillers and shallow offshore companies should show more effect than deep offshore, which in turn will show more impact than fabs and equipment companies. There is also the problem of PE's which are relatively high for the fabs and equipment stocks. While the biggest bang for the buck may go to the land drillers, I opted to buy more FLC and ATW because they have more predictable growth from heavy deepwater concentration and will probably do better in the event oil prices don't strengthen enough to drive drilling and dayrates into a renewed boom.
Baird
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