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

To: chowder who wrote (75040)	9/29/2000 8:07:33 AM
From: Think4Yourself	Respond to of 95453

Thanks, your post made my day, especially this statement "Sue Becht, vice president of investor relations for gas and power company Duke Energy Corp., told Segner and others at a Dain Rauscher Wessels energy conference in Houston earlier this month that 81 percent of the demand for gas will come from electric generation." I regular hear analysts proclaim that producer stocks shouldn't go up because commodity prices have to eventually come back down. To me this is totally missing the point. The point is what the producers are doing doing with all these "temporary" profits. What I have been seeing is that they are paying down debt rapidly, and buying back stock agressively. How does that impact their ratios? How does it change their fundamental attractiveness to have lower debt levels, lower interest payments, and better debt ratings? Stocks I like are the ones where the CEO's are saying "we have so many drilling prospects that we have no current need for acquisitions". Beware any producer that is making acquisitions now or is filing shelf offerings. This is the time to drill, not acquire.