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

To: Big Dog who wrote (4220)	12/2/1997 1:21:00 PM
From: bw	Respond to of 95453

Mike & All: Now that the drillers have become more realistic in their stock values, it seems that going forward one of the restrictions to increased stock price is that the market doesn't feel some of the high PE's are justified for this sector. The economics of growing at a 20x PE have a hard time being substantiated in a sector that has been such a cyclical industry as the oil services. Even with say DO's forward PE of 10x, how will the growth of the company and increased shareholder value be consistently achieved in such a cyclical environment? This hypothetical question gets to my point which is that consolidation and outstanding management will be the keys to success in this industry, just as it has for the rest of the economy. Being on the inside, who has the outstanding management and vision among the drillers? I know that we have discussed RB and their ideas of sector domination, but what others come to mind? Thanks..... Still on sidelines today...