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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: chowder who wrote (6352)	7/31/2001 10:43:16 PM
From: Second_Titan	Read Replies (2) \| Respond to of 23153

Dabum RIG : If RIG trades at traditional multiples to forward earnings it should still drop to 26 or so. I closed my RIG position at 36.6 as soon as I caught the miserable tone of the conference. Lehman revised NE's earnings for 2002 to $3.05 and 2001 to $2.14 after the conference (not much of a change). RIG guided 2002 to ?$2.10. If you believe oil & gas prices are going to drop thru the floor you better be quick. My concern is that either oil prices have to rise more than they are, or NG prices need to drop to clear some NG stock. This quarter's E&P reports are showing much less increases in production Q o Q than the last one. The problem IMO is mostly demand. BTW today's API implied gasoline demand numbers are even more awesome if we are in a recession. I hate to think what they will be when the economy recovers.