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

To: Think4Yourself who wrote (64253)	4/11/2000 10:26:00 AM
From: Tomas	Respond to of 95453

"The pace of upward earnings revisions for oil and gas companies continues unabated" Oil and gas trusts find favour again with tech-shy investors. Crude forecast raised By Stephen Miles The Financial Post, with files from news services, April 11 Volatility among technology stocks has sent some investors scurrying for the relative safety of old economy resource firms. Oil and gas royalty trusts, shunned in the past year despite huge price gains in underlying commodities, are starting to look attractive, analysts say. Crude prices hit 10-year highs of $34 a barrel (all in U.S. dollars) in the first quarter and averaged $29.15 a barrel, according to Bruce Lanni, an analyst at CIBC World Markets Inc. Year-ago prices averaged less than half that amount. The price rise, coupled with muted share gains, has seen multiples for some royalty trusts drop below the low-water mark of four times cash flow per share. In a recent research report David Ramsay and Brian Ector, analysts at CIBC World Markets, labelled as "strong buys" nine oil and gas trusts with dividend yields ranging from 10% to 25%. On the list are Athabasca Oil Sands Trust (AOSun/TSE), Canadian Oil Sands Trust (COun/TSE), ARC Energy Trust (AETun/TSE), Freehold Royalty Trust (FRUun/ TSE), NAL Oil and Gas Trust (NAEun/TSE), Pengrowth Energy Trust (PGFun/TSE), Viking Resources (VRKun/TSE), Westrock Energy Income Fund I (WREun/TSE) and Westrock Energy Income Fund II (WRFun/TSE). The analysts raised their 2000 oil price forecast from $22 a barrel to $25 a barrel, resulting in a significant boost in cash flow per unit for the entire sector. Five firms on their list -- ARC Energy, Enerplus, Maximum Energy Trust, NAL and Viking -- are trading below four times cash flow estimates for 2000. The price of Brent crude dipped to a five-month low of $22.35 a barrel in London yesterday in the wake of the Organization of Petroleum Exporting Countries' March decision to hike output in the second quarter. But a source familiar with Saudi Arabia's oil policy told Reuters that the world's largest oil producer and exporter still expects crude prices to remain within OPEC's $22 to $28 price band. One commodity trader, speaking on the condition of anonymity, said the market had become so transfixed with the supply side that it was overlooking burgeoning demand. "The world is not going to use any less oil over the long term. Demand next year will be stronger than this year, and stronger again in 2002," he said. Others claim oil and gas stocks have underperformed so badly that they are due to rebound in light of improving fundamentals. The Toronto Stock Exchange oil & gas subindex is down 8% from its peak of 6908 in September while the TSE 300 is up more than 33%. Martin Roberge, quantitative strategist at National Bank Financial, said the pace of upward earnings revisions for oil and gas companies continues unabated. Consensus expectations are for the group to increase profits by 93% in 2000, compared with 25% for firms that make up the TSE 300. The relationship between earnings revisions and stocks prices has traditionally held up well. "After all, it makes sense that companies with higher earnings growth than the overall market will outperform," he said. canoe.ca

To: Think4Yourself who wrote (64253)	4/11/2000 10:28:00 AM
From: BigBull	Read Replies (1) \| Respond to of 95453

Ok Ok, so I sold SESI! Sheesh I made 25%, already. ;o} I'm trying to snag some laggards with the proceeds today. Missed GLBL - Damn!

To: Think4Yourself who wrote (64253)	4/11/2000 10:31:00 AM
From: SliderOnTheBlack	Read Replies (1) \| Respond to of 95453

Merrill Analyst on CNBC - says buy OIL ! Says market has discounted stocks here for $16 Oil - and that is WRONG ! Strong upside to the reality of $22-$23 Crude.... Dain, Merrill, SSB etc all pounding the table here - Dain has been pretty damn good with both their top & bottom calls here this cycle - we will see some of that $2 Trillion that is expected to come out of Tech in that quote - unquote "orderly" fashion over the next quarter or so... We run like scalded dogs off of Q1 reporting and see new highs - perhaps OSX 130-135 by Memorial Day.