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Gold/Mining/Energy : Scimitar Hydrocarbons, SIY:ASE -- Ignore unavailable to you. Want to Upgrade?

To: Grislee bear who wrote (660)	12/10/1999 2:02:00 PM
From: Yarek Szolomicki	Read Replies (1) \| Respond to of 864

Oh no guys, It's down! Jeesh did anyone just buy into it??? Sell everything quickly! har har har!

To: Grislee bear who wrote (660)	12/10/1999 2:12:00 PM
From: Bert Zed	Respond to of 864

Miami, FL, December 10 /SHfn/ -- If you love to go long and short in a sector, the oil stocks and oil service stocks must be offering you tons of fun. It's gotten to the point where even good news, such as declining inventories and rising crude oil prices, just mean oil stocks are heading another notch lower. Crude oil goes lower; oil stocks go lower. Crude oil goes higher; oil stocks go lower. How many oil stocks are now trading at a higher price than last April, after the crude oil price convinced oil bears that it was going higher? "Therefore, we recommend investors add to their positions in service stocks before the end of the year." Yes, of course, Wall Street expects crude oil to settle back to below $20/barrel. That's why oils & service stocks are falling like skiers on a Black Diamond slope. Just as most tech stocks enjoyed an exponential moving average crossover since October 28th, oil stocks are getting reverse whiplash. The trend is definitely showing cheaper oil stock prices in the near future and possibly over the intermediate term. But, some analysts are suggesting investors buy this month to enjoy what might become a strong momentum play in the first quarter. On Monday, Frost Securities analyst Lewis Krepps wrote to clients that the oil services sector may be ready for strong gains next year. "The year 2000 is still shaping up to be a strong year, particularly for the diversified service companies, offshore and land drillers, and supply boat companies,'' Krepps wrote. ''Therefore, we recommend investors add to their positions in service stocks before the end of the year.'' We might even have one more "oil surprise" this winter that could send crude oil much higher. Nothing has been resolved with Iraq, OPEC may not step to the plate to fill the Iraqi void, Other than celebrating the rising cost of crude, many second-tier oil companies spent 1999 slashing their costs and becoming more efficient. In a review of some of our favorites the targeted average cost-reduction for the year was around $100 million. That should strengthen the bottom lines. TECHNICAL EVALUTION The long-term technicals in the oil services sector are indicative of a potential three-quarter pause (we're up to two right now), before the next strong rally. Domestic oils are also in a circling pattern, looking for a direction. They, too, are in a pause before the next strong rally. The monthly charts confirm a serious stall, awaiting the next great fundamental development - more than likely a major crisis that we wish just would not happen. Most of Wall Street doesn't expect the oil rally to continue - another reason why we should anticipate an "oil surprise" within the next 90 days. Will the oils bounce back? Yes, most of this sector should out-perform the general market in the first half of 2000.