Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: jim_p who wrote (64993)	4/19/2000 3:34:00 PM
From: Think4Yourself	Read Replies (1) \| Respond to of 95453

You are probably right in your estimates for next year this time. It will depend on what the producers do with the money they are raking in. If they continue to buy back stock, raise dividends, and pay down debt then they will become stronger, commodity prices will stay high, and they will be rewarded with new valuation metrics. If they throw it all into the drillbit then they deserve what they get when prices fall due to increased supply. Personally I think it's hard for an old dog to learn new tricks. Don't think most of the EnP managements will be able to act in their own long term interests for very long. I therefore agree with you. For now they are still stinging badly from last year. They won't throw too much money at the drillers just yet. The leveraged ones in particular will want to use cash to pay down debt in this rising interest rate environment. I am counting on them using their brains about this. I figure it this way. I have a snotload of debt at a bank. The bank is telling me I am going to have to pay more interest on that loan. I suddenly inherit a lot of money. What am I going to do with it?