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

To: Garlic Breath who wrote (82790)	12/27/2000 8:31:55 AM
From: Wowzer	Read Replies (2) \| Respond to of 95453

Hey Steve, I would also take a look at TXCO, ROYL and PLLL. Smaller very illiquid stocks, but I believe still a lot of room to run...... Good Luck, Rory

To: Garlic Breath who wrote (82790)	12/27/2000 9:13:34 AM
From: jim_p	Respond to of 95453

Steve, CRZO is fully priced at 7.4 times 2000 estimated cash flow, which is above the historical average of 4-6 times cash flow. It has done well do to an aggressive exploration program which has resulted in production growing by 73% in 3Q over 3Q 1999, and 5.63% in 3Q over 2Q. In my opinion we are now in the final stage of the cycle, the mania stage. The final stage is usually the most dramatic in terms of appreciation and volatility and has historically resulted in exit cash flow ratios as high as 8-11 times trailing cash flow. The average of 68 oil and gas companies I track is now selling at an average ratio of 5.58 times cash flow which is up 30% from 4.30 just last month. E & P companies could go higher, but I would use tight stops on any XNG stocks at this stage in the cycle. Good luck, Jim