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

To: Think4Yourself who wrote (63045)	3/27/2000 10:01:00 AM
From: Big Dog	Read Replies (1) \| Respond to of 95453

More from Dain Rauscher: Fundamentals for oil and gas supply/demand are better now than in 1997 when the OSX hit 142 and the earnings potential of the companies is higher now. We are further down the decline curve of both oil and gas now; three years further down. Demand is increasing for both commodities, on a broader scale and at a faster rate. That squeezes supply/demand even tighter. And the U.S. government notwithstanding, lowering oil prices doesn't solve the problem (within a range) but exacerbates it. The current valuations of oilfield service stocks mean very little at the beginning of a cyclical industry recovery and in respect to the overall market, represent great relative values. Just as we continually lowered estimates as the cyclical downturn occurred, we will continue to raise estimates through the cyclical recovery, pushing valuations down, even as stock prices move up. And while they may look relatively expensive to many of us who have been covering the industry for some time, relative to the rest of the market, they are cheap. For all the people who don't like the 'relative to the market' argument, and we know and understand the arguments, most of us weren't buying tech stocks early enough for the exact same reason. It is the sector rotation by investors who don't know the historical valuations of these stocks (and don't really care either) that will push them up to new highs. Not everyone likes that argument but how many capitulated and bought Yahoo! last year?