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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: Judy who wrote (13555)	11/5/1997 3:04:00 AM
From: Philip H. Lee	Respond to of 50167

Oil service stocks. I'm not an expert on the sector, but from what I know the sector is highly cyclical, perhaps even more so that semiconductor equipment companies. Capacity is beginning to build, and I anticipate the sector could be vulnerable in the future. All the hot IPO's in the sector indicate to me that things are beginning to get frothy. That said, I shorted Smith Intl (SII) today and bought Dec calls as a hedge. Maximum loss on my position is about 6.5%. I don't have anything against SII but wanted to try a low risk strategy as SII's technicals appear somewhat toppy. However, I could be wrong on this hence the hedge. Philip