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

To: Flan who wrote (6651)	1/5/1998 6:43:00 PM
From: A. Fineigler	Read Replies (1) \| Respond to of 95453

Oil production is firing on all cylinders while demand has experienced a hiccup. A slight demand increase or production problem will send crude prices up pretty quickly. As you indicated, weather, Saddam's Flying Circus, Asian rebound, Opec cutback, war or political unrest in any number of places, ... doesn't take much to send prices charging back up. At the same time, this sector is projected to remain healthy through steep crude price declines. So we have downside resilience in the companies' business models (if not the stock prices) and great upside potential. Fund managers are measured on very short-term results. So they panic and pull the sell button at the slightest hint of trouble. A very silly system. No wonder they can't even match the indices. Good luck holding on. Hope your fingernail is strong. AF