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.

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

To: james paterson who wrote (2907)	11/13/1997 12:28:00 PM
From: chirodoc	Read Replies (1) \| Respond to of 95453

<<<<<Do you feel that the weakness in this sector is mainly due to TA concerns or do you think there are other reasons behind the decline? ...blowout numbers--price rises--short term traders sell off for temporary profits. i have been in this sector for a year now and have seen it before. i'm buying on weakness and holding for next 1-2 years. ........i think the next few quarters will show good numbers-- the price rise should resume.

To: james paterson who wrote (2907)	11/13/1997 12:29:00 PM
From: SJS	Respond to of 95453

It's a Very big red day on my screen. It's anything to do with OIL drilling. RON down over 5, GLM down close to 2, TDW down close to 5, CDG down almost 4. Not much (except SESI, SC) is green. If you're a longer term player, just wait it out. Very soon now, it will be great buying opportunity, as Thean said.

To: james paterson who wrote (2907)	11/13/1997 12:32:00 PM
From: mph	Respond to of 95453

James: I'm actually feeling a little paranoid myself...The problem is that the drillers have actually been turning in good earnings together with good projections for at least the next year to two years. What could possibly be out there that could be affecting the profitability of this entire sector? I could understand the selloff of a particular co. if it had some particular drawback, but the sell off here is obviously not company specific. Consequently, I keep coming back to the "window dressing" explanation as a possibility. Given the increases in price across the board in this sector, I feel that the MM's have to capture some of that profit for their year end beauty contests. The same would not be true of many other sectors at this point. There's my 1 1/2 cents. mph

To: james paterson who wrote (2907)	11/13/1997 12:38:00 PM
From: Thean	Read Replies (2) \| Respond to of 95453

TA helps analyze past price movement and predict future trends but TA DOES NOT cause the weakness in the drillers. I have seen this apparently unknown weakness before, in fact more than once since last year. The funny thing is, prices always dropped before analysts and mass media came out and offered all sort of explanations. I think the truth is closer to the perception that the drillers have exceeded their current valuation and people are pocketing profits. Another irony is we have way too many ultra bulls (many on this thread) who can see only one direction - up. The drillers are in the long term up trend BUT there are always short term cycles - REMEMBER this. The key is timing. By relying on TA as guidance to timing, one can definitely sleeps better regardless of the direction of the drillers. This is what I call risk/reward management and it works. One can wonder why the prices keep falling after ML and others issued BUY NOW kind of statements (per LT). Think about it, the money that will come back and buy the drillers back up are those that pocketed their profits early on. We will know it when the bottom is reached. I will definitely put all my cash to work at that point.