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

To: Terry D who wrote (74666)	9/26/2000 12:16:53 PM
From: SJS	Respond to of 95453

"But guess what folks, it doesn't matter..." _______ BJ Services (BJS) 58 7/8 +1 13/16: Oil services and equipment stocks took a beating over the past few days, as crude prices fell from over $37 bbl to nearly $31 bbl... But guess what folks - it doesn't matter... The first thing to understand is that the recent drop won't change Q3 earnings, which will be (generally) outstanding... In fact, Briefing.com expects the oil service companies to deliver positive earning surprise after positive earnings surprise... Secondly, the forward outlook will remain very bullish as oil companies will continue to increase spending on drilling related services and equipment as long as crude prices average better than $22-$23 bbl... And based on the current demand/supply condition, Briefing.com sees very little chance that crude prices will fall below this floor any time soon... To the contrary, we expect to see oil prices firm in the days ahead to $38 bbl+... Consequently, now is a good time to do some bargain hunting in the group... One stock that stands out to us is BJ Services... First, the earnings numbers look great... The stock is expected to earn $0.46 in the current quarter (+666%), $1.36 for FY00 (+1034%) and $2.30 in FY01 (+69%)... Second, we drilling and exploration activity in the oil and natural gas markets to continue ramping up in the months ahead due to tight supply conditions... Third, major support in the 55-53 area held... Since March, the stock has followed every slide to this area with a subsequent rally to the $70 area... Given strong industry and company fundamentals, we expect a similar bounce this time as well. --Robert Walberg, Briefing.com