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

To: Proud Deplorable who wrote (40823)	3/25/2005 4:44:03 PM
From: Taikun	Respond to of 206290

Ralph, I think energy stocks will be weak for a couple of months. Longer term, the performance will depend on how much liquidity is removed from the market right now, and whether liquidity comes back (ie after rates are lowered in the future) I might keep alternative energy, uranium, as I think they're different. There is simply no reason why an energy stock with a PE of 14 now, and 25% undervalued to the S&P's PE at 19, would not continue to be undervalued when the S&P corrects 20% to 15 and the PE on the energy shares drops to 11 or less. In fact, by that time, the economic slowdown could be having so much of an impact on the price of oil to spur analysts to assign lower oil prices for future years, driving forward PEs in the energy sector above the S&P, to an overvalued level. (eg. If the price of an energy stock is high relative to the lower forward earnings at a lower price of oil) The current spike in the USD may last awhile, and when it turns energy could be a good bet again. Right now cash, uranium, alternatives look good. ST, I'm not keen on energy, BMs or PMs. BWDIK David