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

To: kormac who wrote (75782)	10/7/2000 7:26:52 PM
From: Tomas	Read Replies (1) \| Respond to of 95453

The oil sector is the best refuge from energy shocks The Globe & Mail, Saturday, October 7 By JEFFREY RUBIN, chief economist and managing director of CIBC World Markets ... What does one do with all that money taken out of broad equity indexes and fixed-income markets? The one obvious place to invest in an energy shock is, of course, in the energy sector itself. I figure if I'm going to feel poorer every time I fill up my tank, I might as well own the companies that are taking my money. While the oil and gas index is already up more then 40 per cent since the beginning of the year, valuations show little inkling of just how close we are to a global supply wall. At $40 crude, the TSE's oil and gas sector should be valued over 11,000, using forward cash flows as a guide. Currently hovering around 8,000that still leaves another 40-per-cent upside. That's an attractive proposition anytime. But it's particularly appealing when the stock market and the bond market look like they will be hard pressed to outperform even cash. The market is just beginning to sense the enormity of the pending energy crunch. When it does, investor demand for oil and gas stocks is bound to explode. Full article: globeandmail.com

To: kormac who wrote (75782)	10/7/2000 9:31:33 PM
From: Razorbak	Respond to of 95453

MDR & OWC Seppo: IMO, the main difference between MDR and OWC is that MDR's asbestos liability is limited to the Babcock & Wilcox subsidiary, and that's the only subsidiary that has sought protection from creditors (i.e., asbestos attorneys) under Chapter 11 of the Bankruptcy Code. Fortunately, for corporations like MDR, the corporate veil shields the substantial, cash generating assets of the other subsidiaries (e.g., J Ray MdDermott) and the corporate parent. The only real risk to MDR's stock, IMHO, is if the asbestos attorneys find some way to pierce the corporate veil, and that's usually very difficult to do. I honestly don't think it's going to happen here. And with very positive fundamentals in the oil & gas sector, J Ray McDermott will soon begin to take the spotlight away from B&W. I'm expecting a very positive conference call after earnings are announced. That's why MDR now makes up 15% of my two portfolios, both taxable and IRA. Just my two cents. Razor