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

To: Bazmataz who wrote (6831)	1/7/1998 11:41:00 AM
From: Tulvio Durand	Read Replies (1) \| Respond to of 95453

No earnings downgrades confirms that fundamentals remain intact in the oil drillers sector and that stock devaluations are perhaps an over-reaction to Greenspans' mention of Deflation. The problem with talk of Deflation is that people conjure up visions of Recession. These notions, well founded or not, produce a fear response which is not easily nor quickly dispelled. I would expect Greenspan to issue a "clarification" in order to calm the markets. I agree with you tthat if earnings do not live up to expectations there could be further erosion of valuations. But with show and tell being so close, the drillers know now what their Q earnings will be, and they would would already have 'fessed up any pending disappointments. Tulvio