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

To: Czechsinthemail who wrote (5142)	12/15/1997 3:45:00 AM
From: Chuzzlewit	Respond to of 95453

I like your analysis Baird! I'm still holding ESV, GLM, TDW and VRC. All of these have gotten pretty banged up lately. Regards, Paul

To: Czechsinthemail who wrote (5142)	12/15/1997 7:38:00 AM
From: Thean	Read Replies (1) \| Respond to of 95453

Baird, your analysis is pretty accurate. Don't overlook the price of natural gas. In reality the natural gas prices will have greater impact on the drillers bottom line than crude. The ratio of importance is more like 70:30. So if crude go to $15 and natural gas go to $4 (not suggesting this is likely short term), the drillers bottom line will be even fatter. Just ask Mike if there is doubt.

To: Czechsinthemail who wrote (5142)	12/15/1997 8:46:00 AM
From: Alias Shrugged	Read Replies (3) \| Respond to of 95453

Baird I agree with everything you say - drilling activity remains very strong, this whole sector will have great 4th qtr earnings and their is almost nothing that could stop them from having great 98 earnings. But, I think the market is focused on the price of oil and the possibility of further declines due to lower SE Asia consumption, and therefore are assigning a "top of the cycle" earnings multiple to the current earnings. Ain't nobody who wants these stocks to go up more than I do. Maybe for Christmas, we can sign Mike Simmons up foir the "Pie of the Day" Club? Mike