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

To: Thean who wrote (3095)	11/18/1997 7:44:00 PM
From: Thean	Respond to of 95453

Turnaround Watch. Since all of us here are eagerly waiting to see a turnaround but it seems nowhere in sight from TA standpoint, let me lay some possible scenarios when things begin to turn. 1) If we gap down at the open, good sign. Watch the intraday carefully. If by noon the entire sector rallies, jump in at the market. If by 15 minutes before the close and the whole sector is still holding on to the gains, jump in again before the market closes. The probability of making serious money is very good when this scenario happens. 2) What if there is no gap down at the open? Watch the tape carefully and look for sign of stabilization. Heavy intraday churns with strong volume would be a good indicator of bottoming. If the price 15 minutes before the close is 2-3% higher than at the open, jump in. 3) What if they open gap up in the morning? Haven't we seen it enough for the past 2 weeks? If 15 minutes before the close they are higher than the open, put some money in but not all. 4) What if things repeat itself like today? Repeat #1, #2 and #3 the next day. 5) Timeframe to turnaround? Don't know. As soon as tomorrow, as late as 2 weeks from now. Hope these bottom fishing strategy pays off for many.

To: Thean who wrote (3095)	11/18/1997 10:38:00 PM
From: pz	Read Replies (1) \| Respond to of 95453

Thean, In answer to your question...people are not scaling back right now, just the opposite is happening. Companies have learned to live with $20 oil and can make a nice profit at that price. 3-D seismic and 2-D seismic have lowered the risk of drilling a dry hole tremendously. There are very few new rigs being built in our local area if any, since people remember the bust not too long ago, when drilling rigs were cut up for scrap iron. I'm very positive on this sector since I see day to day that things aren't slowing down. I look at what is happening now as sector rotation. The bottom line is...will these companies continue to produce the great earnings....from what I can see the answer is yes. Regards, Paul