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

To: BigBull who wrote (71574)	8/24/2000 10:16:06 AM
From: Tomas	Respond to of 95453

The market has been hesitant to buy oil and gas stocks this year despite strong commodity prices, remembering that crude prices were $20 a barrel a year ago and just $12 in early 1999. But the continued tight market for crude oil and natural gas is beginning to win investors over, analysts said. "It's about time," said Brian Prokop, an analyst at Peters & Co. in Calgary. Mr. Prokop said that while commodity traders often react quickly to day-to-day news in the oil and gas sector, equity traders have been looking for longer-term trends before committing themselves. He said the strong performance in the first half of 2000 may not have convinced everyone to jump into oil stocks, but the continued high prices so far in the third quarter are strengthening the argument to buy. "Two quarters do not a trend make," he said. "Three quarters is a trend." ... Canadian oil and gas stocks are considered a buy right now, analysts said. They said that although the oil and gas index is near a record high, valuation measures such as price-to-cash-flow ratios are still well below their normal cyclical highs for the sector. "By any measure, oil and gas stocks are a tremendous value," Mr. Prokop said. From today´s Globe and Mail