Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: Frank Pembleton who wrote (151)	8/18/2001 8:46:52 AM
From: Frank Pembleton	Read Replies (1) \| Respond to of 36161

Ford to cut up to 5,000 jobs White-collar workers targeted: Embattled automaker also slashes full-year profit forecast by 40% Thomas Watson, with files from David Steinhart Financial Post Scandal-scarred Ford Motor Co.'s problems may not be over -- even after yesterday's announcement the automaker is cutting between 4,000 and 5,000 salaried jobs, or 10% of its white-collar workers in North America. Reeling from declining sales and market share, the Firestone tire and ignition system fiascos, recall-related lawsuits and safety issues surrounding its Explorer SUV, the company slashed its full-year earnings forecast by more than 40%, and also unveiled plans to pressure suppliers to cut costs. nationalpost.com --------------------------------------- Auto parts firms feel the ripple effects of Ford's planned cuts David Steinhart Financial Post Shares in Canada's major auto parts companies, including giant Magna International Inc., were hammered yesterday after Ford Motor Co. said it will dump 4,000 to 5,000 salaried employees by the end of the year. Magna, Wescast Industries and Intier Automotive Inc. were all hit, even though the job cuts will come from non-production areas of Ford. Magna stock was down almost 4% in intraday trading to $99.22 on the Toronto Stock Exchange. It closed at $99.27, down $3.62. Wescast closed at $49.55, down $2.96, while Intier closed at $22.30, down 80¢. nationalpost.com --------------------------------------- Wave of bad news hits Wall Street Banks sell-off on TSE Financial Post, with files from news services U.S. stocks slumped yesterday, with major market indexes hitting four-month lows, after job cuts and a bleak outlook by embattled car maker Ford Motor Co. and poor earnings from Dell Computer Corp. washed away investors' hopes for a recovery anytime soon. nationalpost.com --------------------------------------- Certicom to cut workforce by 25 per cent By TERRY WEBER Globe and Mail Update Security software firm Certicom said Friday it will post a loss in the first quarter and expects to cut its work force by 25 per cent by the end of the current three-month period. For the quarter, Hayward, CA.-based Certicom said it expects to post a loss of 32 cents (U.S.) a share — excluding non-operating and restructuring charges — when it reports its first-quarter results Aug. 30. globeandmail.com

To: Frank Pembleton who wrote (151)	8/18/2001 4:22:38 PM
From: t4texas	Read Replies (2) \| Respond to of 36161

was this the entire barrons article hi frank and thanks for posting the barrons article on oil/ng. do you know whether this was this the entire article or did the hardcopy contain more? i have no idea. i am just asking. the oils have problems, but i wish more analysts made comments in the article other than fred leuffer. even when i saw him the first time on tv in 1999 he was talking about $18 oil. in 2000 he kept talking about $18 oil. i was not impressed by this barrons article, because it did not have substance this time. it was just fred saying opec/$18 oil and the money runner who sold a bunch of oil companies. the barrons oil research people must have been on vacation for this article.

To: Frank Pembleton who wrote (151)	8/19/2001 11:06:21 AM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 36161

Frank, the BARRON'S article seems to reflect several comments on this (and the earlier) thread; namely, that a drop in crude oil and natural gas prices means a drop in profits for companies at virtually every stage of the exploration, development, transport, refining, marketing and distribution chain. I do not disagree about near term lower prices, but that doesn't mean there's nothing worth buying in this area. First, I think oil and gas producers would have to show that their reserves remain profitable at prices less than the current prices of oil and natural gas, or less than the estimates of prices for the next couple of years. There are many marginal producers who may not do too well if the cost of production added to the cost of the existing assets comes close to the market price for crude oil and natural gas. Not all producers will be unprofitable, even if oil drops to $20 per barrel and gas drops to $2.50 or so. Second, although demand in the U.S. and Canada may not expand very rapidly over the next three or four years, demand elsewhere, particularly in China, is increasing at rates close to 20 percent or MORE annually. That's because of the increasing reliance on motorized vehicles (replacing bicycles, among other things), coupled with the need to adopt cleaner electric power generating plants in the Beijing area, in preparation for the 2008 Olympics. Demand for oil and natural gas fuels in developing countries is the key factor in assuring that prices of these commidities will not plummet, and in fact, that prices are likely to remain stable over the next year or so. I do not agree with the belief expressed in the BARRON'S article that the Arab countries lack discipline sufficient to prevent further drops in the price of oil. As downward pressure continues to increase, it is likely the OPEC nations will be less inclined to remove restrictions on Iraqi oil. The removal of these restrictions is the only event that I can see, which would really cause prices to drop. Assuming prices don't drop (my assumption), I am optimistic about the near term prospects for some primarily producer oriented companies. I'm not particularly impressed with any of the companies mentioned in the article, however. Art