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

To: Roebear who wrote (64233)	4/11/2000 9:22:00 AM
From: Big Dog	Read Replies (1) \| Respond to of 95453

From Dain this morning: * Oil prices dropped to $23.85 per barrel from $34.00 and considering the global supply/demand balance, the risk/reward scenario is positive. * Concerns about additional production from Venezuela is misguided: a 100,000 barrel per day increase would generate more than $200 million in annual revenues for the service sector. * The risk/reward of crude oil prices and natural gas prices causes us to recommend investors aggressively buy oilfield service companies with the expectation of 35%-45% upside over the next four to six months. \|\|It is also true that oil company spending is not dependent on oil prices staying at $25 per barrel, but more likely that average prices stay greater than the $20 per barrel threshold which appears easily doable. That said, the risk/reward of any correlation between crude oil prices and oilfield service stocks gives credence to the upside for stocks. \|\| \|\|Missed in all of this discussion and concern about OPEC are natural gas prices which are up more than 50% or more than $1.00 Mcf greater than the same levels seen last year. This would indicate that natural gas prices in 2000 could average $1.00 per Mcf greater than last year or more than $3.00 per Mcf as indicated by the strip price. And since 80%-plus of North American drilling is for natural gas, activity should be up much stronger than had been expected by the strength in gas prices alone.

To: Roebear who wrote (64233)	4/11/2000 9:29:00 AM
From: hdrjr	Read Replies (2) \| Respond to of 95453

Roebear, Ditchdigger or anyone, I bought a little GLBL near the close yesterday. Has anyone seen any news to warrant such a drop? Actually given back 30% in the past few days, hope 10ish is the bottom, I see no reason to have dropped out of the trading range, but will add more if it goes below 11. Also caught KEG at 10 3/8, feel fortunate, hope I was. Added a little VRC at the close, I can't see much more downside risk, but it may be dead money for a while. May go back to shorting techs today. hdr