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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Now Shes Blonde who wrote (157)	3/25/2001 10:05:26 PM
From: Now Shes Blonde	Respond to of 206338

...high natural gas prices can also be like a double-edged sword, and although our industry relies heavily on strong energy markets to keep a healthy order book, both natural gas and oil are major cost ingredients in the manufacturing of steel pipe, and steel mills today have a voracious appetite for gas and electricity as they are seeing energy costs triple and even quadruple over last year. Energy costs are a much more significant percentage of finished product costs, and currently domestic producers have not been able to pass on the energy cost increase that will have an impact on the inability of domestic producers to beat import pricing in certain segments of the market. ... findarticles.com

To: Now Shes Blonde who wrote (157)	3/25/2001 10:36:01 PM
From: pls418	Read Replies (2) \| Respond to of 206338

Anyone care to discuss what a recession might do to our oil hopes and dreams? What it might do to demand? Can OPEC cut enough to offset the effects of a recession? I am sure these worries are why we are staying in this trading range of late.

To: Now Shes Blonde who wrote (157)	3/26/2001 7:25:16 PM
From: pls418	Respond to of 206338

Now Shes Blonde, Concerning the slow sales of industrial tube here is just a short clip from a poster on the RIG board (supplyside) MVK shipped 190 tons/258 tons or 77% for energy related products; by default we can say that MVK's strength is in this area -MVK reported that over 80% of their revenue falls under this category, with industrial revenue close to 20% of the pie. Thus probably serving a lower end of the mkt. -As long as distributors have clear channels to purchase OCTG, MVK will do well. Most importantly with a broader mkt area covered, and better product mix, the company will start to exploit its fixed cost base. When this clicks it will only strengthen as strong volumes grow in line pipe(gas transmission, etc, which do not get the benefit of margin expansion due to lower pricing,-Volume surge will suffice. Takecare