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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Michael July who wrote (2477)	10/24/1997 11:43:00 AM
From: bw	Read Replies (2) \| Respond to of 95453

To put in an opinion that is diverse from those in the majority, seems to me that the "correction" in the drillers hasn't even begun yet. I tend to take the unanalytical approach as one of punishing the new money that moves into any stock and achieves quick profit too much-too fast. These stocks have moved up 50%-200% in the past six months. There is no "undiscovered" sector in these sophisticated economic times. Now that these drilling stocks have become known to everybody from Uncle Bob to Aunt Sue, the momentum play that has developed will work both ways. As posted, the earnings "surprises" are pretty much taken out of the equation, since the day-rates and number of rigs is a finite, and the numbers are well within estimatable limits for the most part..ie. six rigs @ $70k p/day. I still like the sector and will try to buy on the value + momentum, but feel like there is still alot of froth in these seas..

To: Michael July who wrote (2477)	10/24/1997 3:01:00 PM
From: Thean	Read Replies (4) \| Respond to of 95453

My thinking is the drillers are going to be in the trading range with their recent highs as the top of the trading range for a few more weeks at least. It is hard to imagine they should go higher now given the market condition. Drillers may be considered a safe heaven if the overall market deteriorates but that would only be temporary. The street has a way to selecting out sector by sector to trash in a down market that lasts a few weeks. Who knows we may be in it already and if so look for the drillers to take their hits one day. On the flip side, if the overall market can stabilize then the drillers may be spared. As I always say, long term holders should hold through peak and trough. And for short term traders, cash is king right now.