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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 (72410)	9/6/2000 10:46:48 AM
From: warren harris	Read Replies (1) \| Respond to of 95453

Does anyone follow ROYL (Royale Energy Inc). The company appears to be predominately a natural gas E&P with most of reserves in California, although a small proportion in other areas. What caught my eye, is that they don't appear to have any hedging of production, instead selling at spot prices (as per 10K). In today's pricing environment I would think this would be a major plus in their favor for filling company coffers. Debt is .65 of equity and no institutions appear to hold at this time. As a little guy - would they be worth following further? Thoughts and opinions would be appreciated. Tks

To: Jon Cave who wrote (72410)	9/6/2000 10:47:49 AM
From: Jon Cave	Read Replies (3) \| Respond to of 95453

DJ Merrill Lynch Says Fill Up On Oil-Services Stocks>RDC T DJN: DJ Merrill Lynch Says Fill Up On Oil-Services Stocks>RDC TDW By K. Maxwell Murphy Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Investors of all types should "significantly overweight" their portfolios with oil-services stocks, Merrill Lynch analyst Kurt Hallead said in a Wednesday morning conference call. In five out of the last six years, Hallead said, the Philadelphia Oil Service Index has outperformed the Standard & Poor's 500 Index. In those five years, he said, the average relative outperformance has been a whopping 50%. Merrill advocates a "broad package" to "maximize liquidity," and recommends offshore and land drillers, plus some mid-cap among the services sector. Merrill's top seven picks are, in order of projected upside to the target prices assigned them by the firm's research team: Rowan Cos. (RDC), Tidewater Inc. (TDW), Precision Drilling Corp. (PDS), Ensco International Inc. (ESV), Nabors Industries Inc. (NBR), Noble Drilling Corp. (NE) and Smith International Inc. (SII). Hallead predicted that the Philadelphia Oil Service Index, which was recently at 137.73, up 1.65 or 1.2%, will climb to more than 170 points, "potentially by late this year or early next." He likened the situation to fall 1997 - the last peak for the stocks in the oil-services sector. Investors are just beginning to see the strength in the "absolute and relative multiples," and the "magnitude of pricing power and earnings momentum" in the industry.