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Gold/Mining/Energy : Strictly: Drilling and oil-field services
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To: SliderOnTheBlack who wrote (27772)8/14/1998 6:27:00 PM
From: Douglas V. Fant  Read Replies (3) of 95453
 
Slider, I cannot answer if EVI should have been subjected to this level of pounding. But I do work in the energy industry. And might it help you to know that our energy concern (like others) are basing our business plans upon a turnaround in Asian energy demand in the 2d half of 1999?

I too bought EVI today @ $20/share, and then sold a Sep 20 call option @ $1 1/2. There were some huge block trades today on EVI, including one block trade of 285,000 shares which suggests that funds unloaded. Usually after a huge drop off a stock takes a few days/weeks to "get its legs" and also Sep/Oct is usually a weak period for the market- so I chanced selling the Sep 20 option.

If EVI dips further, I'll hold from here, and double my position if it hits $16/share.

Note that book value is about $12.80/share, and I believe that this is calculated after the writeoff related to the Weatherford acquisition announced last month- but I'll check that point... Note too that I first bought this stock @ 27 5/8ths, then stoppe dout @ 24 3/4's, so this is my second entry- and I also doubled the number of shares I bought today.

Short-term, these service sector shares could go anywhere. Long-term, with many major world oil fields reaching maturity, look for lots of service activity to be necessary in order to maintain a 75mm bbls/day average for world oil production..... You don't just punch a hole in the ground and ready to use oil sprouts up. There's about a dozen steps from the ground to the refinery and the service sector is involved in the majority of them.

I'll be watching BHI and SLB too.....

Sincerely,

Doug F.
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