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

To: Jon Cave who wrote (71833)	8/28/2000 3:50:31 PM
From: ItsAllCyclical	Read Replies (1) \| Respond to of 95453

"It seems a bit early, but a lot of people are panicking," said a Sprague Energy Corp. source. "We've hit our allocation, and we don't want to overextend our ability to supply customers at the rack in an efficient manner." That quote is in regards to HO (Jon Cave's recent post), but crude and NG might be next. Especially if the perception changes from OPEC can simply increase supply to OPEC may not have enough extra supply. Still cautious because of our near term run, but I'm also 100% invested, just not using any margin. Remember what brought about the energy crisis in 70's according to Simmons (or at least sent it over the edge into a full crisis - my interpretation): HOARDING. Hoarding compounded the problem by many times. We don't have a problem yet, but if we see ANY hoarding in HO, crude or NG then we have front page headlines and prices go thru the roof. - Also looked at PGEO. It may take longer to turn due to it's segment, but techncially it's certainly bottomed. Fundamentally, very little debt and positive earnings make it very attractive. Bought a position today at 6 1/8 and 6 1/4. It's a great play from a risk/reward standpoint.

To: Jon Cave who wrote (71833)	8/28/2000 3:56:46 PM
From: Think4Yourself	Respond to of 95453

Hey, a reporter gets it!! Good insightful article. To translate what the distributers said: "We got greedy and ended up shafting ourselves". They let customers lock in prices and then waited for the market to fall so they could stock up and pocket the difference. Market kept going up and now they're up the creek without the money to buy a paddle. Expect a LOT of whining from those guys in the coming months, and from the poor customers who didn't have the foresight to lock in prices.