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 (26959)	8/3/1998 9:06:00 PM
From: VLAD	Read Replies (1) of 95453

Slider, I think that the trick here is not whether or not the sector will turn and in how long. Since all of these stocks sell off in baskets there has been little if any selective selling going on. The trick is to chose which individual stock(s) of the group is beaten down to a level that when things turn they will have the fastest legs on the move up. CDG is now over 75% below its 52 week high and when I look at its earnings for the quarter that it traded to its high of 82 (earnings were .88/share for q4'97) and see that last quarter's earnings were only 2% below the quarter it traded up to 82 I can say that stocks like this are way oversold beyond reason. Cliff's next quarter estimate is for 1.04/share and while I know that that number will be lowered, they will still make over .80/share at present day rates. When things start to turn I think oversold stocks with very small floats such as Cliffs will tear back up just as fast as they dropped south. IMO too many institutions are trading these stocks way to closely to the crude oil futures without paying attention to individual company fundamentals.

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