Strictly: Drilling and oil-field services Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: marc chatman who wrote (27566)	8/12/1998 10:30:00 AM
From: SliderOnTheBlack	Read Replies (2) of 95453

marc; ...RE: FGII ----gotta like it today ! I bought FGII yesterday because of the overall sector establishing a double bottom off of low volume. Given; FGII did have huge volume, but the sector did not. I have kept telling people that FGII is unique that due to many people holding from the original IPO (funds included) that they were still holding a ''profit'' and finally sold at a level that the ''pain'' was inflicted. - other patch stocks went through this long ago - falling below 52 week lows all ready... The double bottom was not my personal indicator - I was willing to buy on pure value; but it was THE indicator that institutional money had publically stated that THEY were waiting for. The biggest factor to sector rotation ''right now-right here'' is NOT crude oil ! - if it was why are we up today & why were we up friday off of NO positive crude news ? It is because of the fear that has finally overtaken the over all market. People weren't coming to the patch in mass, regardless of the prices here; untill they had a reason to - ie: a correction in the overall market. FGII at $15 has twice the upside as downside - this is not gambling here; this is the market daring you to act upon an extremely overweighted risk vs. reward ratio. FGII has a small chance of going to $10, but is more than twice as likely to go to $25; 2 x the upside as downside and twice as likely to move up from here rather than down - imho; I'll take those odds - given the incredible fundamentals and growth story with FGII. The ''bellweathers'' like RIG, RON, EVI, FGII and so on, are phenomenal values here - we are not dealing with tech companies where a competitors new technology can make you extinct overnight... or internet stocks where there are not the fundamental earnings to support valuations, this is one of the worlds most basic industries - not going out of business any time soon. We had a free preview of how fast this is going to move - when it does finally breakout. The ''timers'' will be faced with an impossible decision - is this another ''headfake'' rally and when & where do I get on or get back off ? I say this is ''candy from a baby'' here at these price levels - selectively ! - not accross the board yet. Big names - with strong core niches are the play here now. I'd wait on land drillers (don't have any currently - love PTEN,BDI,UTI-later) and all marine/boat stocks for now... Can't make that BIG MONEY by following the crowd...no one ever has & no one ever will....(excepting 'net-nuts !)... So; what do you think of todays action ? Anyone buying, allthough yesterday was the day folks...? *** clarifying my point that crude is not the primary driver right now; the overall market correcting or the fear of it correcting is the catalyst now to move money to the oil patch. We can go 20-30% from here on this sector rotation & short covering at current crude prices. Then we will base; then as crude fundamentals improve - crude will once again become the fundamental driver for the next leg - then positive earnings and analyst upgrades will be the next driver - to where we can go to the April/May price levels (50-60% from here); then when we finally get crude to $16-17 consistantly and start getting some positive comments on the first signs of an Asian recovery - we will then be firing on all cylinders and will make the big run to prior or new highs.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next