Silicon Investor (SI) -- The First Internet Community

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 -- Ignore unavailable to you. Want to Upgrade?

To: CpsOmis who wrote (52481)	10/5/1999 7:56:00 PM
From: Winkman777	Respond to of 95453

The FOMC change from neutral to a tightening bias brought the market down to about even for the day. At about the same time crude rallied, and many of the oil stocks moved up a little from their daily lows. I was pleased to see the market finished essentially unchanged. It was like salt on a wound seeing it up 120 pts. while oil stocks crashed earlier today. Today's drop in all oils was IMHO an emotional (fear) overreaction to Hal's warning. While it may persist for a while, I am very comfortable with HAL. IMHO the positive effect of getting rid of the 2 underperforming (read money losing) parts of Dresser and the $1,000,000,000 before tax proceeds, far outweigh the temporary negative of somewhat lower earnings for the 2nd half of 99. In fact I can not think of a more profitable scenario to bring about a cheap entry point for HAL. Compare it to crude over the last few years and I'm sure you will see the current anomaly. Focus on the fundamentals, high crude, increasing rig count and worldwide demand, and shrinking inventories. I feel that a key point here is that since we've had more rational leadership in Iran, Ven., and it appears now even Iraq, OPEC will continue to do the sensible thing for themselves. This does not mean there will not be a small increase in production next March. I think that may happen. But I cannot see crude less than $20 through 2000. Also another 1/4% increase from the FOMC seems reasonable, maybe early next year. To me it's only a matter of time until Big Dog's Boom 2000. Shalom, Wman