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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: gregor_us who wrote (24937)	1/19/2005 12:02:39 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 110194

at the same time the market has been stubbornly skeptical about the Oil and Oil Service stocks, i think less skeptical about the service stocks. many trade at PEs well above 30--50, 60, 70, you name it, or don't even have meaningful PEs. dividend yields are usually less than 1%. i don't see the margin of safety in the service cos, compared with E&Ps trading at single-digit or low double-digit PEs. the cheap valuations of the E&Ps gives them leverage to grow earnings through share buybacks instead of paying exorbitant day rates. an example is Anadarko, which recently reduced its 05 capex budget in order to buy back more shares.