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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: Snowshoe who wrote (29734)	11/30/1997 11:46:00 AM
From: Alias Shrugged	Read Replies (1) \| Respond to of 58727

I've read that most Oil Majors will continue to explore even if oil drops to $15/b. But, at this point, fundamentals aren't driving the stock prices in this sector. There has been a rather ugly confluence of events pulling these stocks down from their highs (which were achieved partly due to some temporary favorable factors). o The Iraq mess is moving towards a peaceful resolution - this was propping up prices slightly. o Further, UN may allow $3B instead of $2B oil-for-food deal with Iraq o OPEC trying to restore credibility to their quota system (and Saudi Arabia) trying to get its fair share of the higher quota o Fidelity and other funds locking in profits o Mo-Mo money leaving town o SE Asia meltdown impacting projected oil consumption, etc. I continue to see excellent earnings from this sector. These steady, predictable and increasing earnings will look even better once other sectors begin to lower their 1998 estimates. Drilling profits are being driven by pricing power, not any artifical or cute accounting gimmicks. BUT, what the hell do I know. Good Trading Mike