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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Wowzer who wrote (53653)	10/28/1999 10:26:00 AM
From: SliderOnTheBlack	Read Replies (1) \| Respond to of 95453

Refiners up strong; 3,4,5% - Intnl Oil up/ but OSX down 2% ? ... prepare for the shakeout in the OSX so that the fundies can re-enter at those sweet prices of OSX 67-68 that we just had; they've got to knock some leaders down a couple of bucks here. Obviously the supply/demand - commodity price fundamentals are very strong. It is simply amazing that we have the duality of historically strong Crude & Gas prices and an OSX hovering near 70 ? Imho; fair value is 90ish; and we should be bouncing off 100 on the strong expectations of the fundamentals turning strongly within 2 qtrs. Because the fundamentals of commodity prices and the nearterm potential for dramatic upside in rig counts & dayrates and cap ex spending to a degree; is so high. We are setting ourselves up for a major coiled spring type of breakout. It would not surprise me to see a 3-4 week - 30%+ sector move here at nearly anytime... Look at the E&P #'s here verus the same time when we were at OSX 70ish last fall, or this spring. We have E&P's with huge multiple improvements in cash flow & earnings. This flow of cash will obviously go to more drilling & cap ex spending here - it is presently. The OSX is a pot - steaming on the stove; and that "lid" is going to blow any time now... .... simply a matter of time; as we are approaching valuation anomalies not seen before, with shareprices here not at all reflective of commodity prices, or in the case of the E&P's of "present" cash flow, production and earnings; let alone the future expectations. Boom 2000 will live up to its name, as imho; its going to explode... no steady move; the fundamentals are moving too quickly - we're going to see a 30 point move in the blink of an eye... simply have to.