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

To: The Perfect Hedge who wrote (7390)	1/9/1998 6:54:00 PM
From: pwrmstr	Read Replies (1) \| Respond to of 95453

Basically, the market is saying that the earnings projections for 1999 and beyond are off by a huge factor, therefore the P/E is meaningless. Reminds of the semiconductor meltdown in '95 when stocks like Cypress Semiconductor were trading at a 10 PE and a price of 16. The stock is now at 8 1/2. There is a huge difference here in that unless oil drops below 16 and stays there for a few months, the supply/demand balance should remain strong in oil services. This is not an industry on the verge of rampant overcapacity; however, the truth is that no one knows for sure how this Asian thing is going to turn out. Money Managers hate ambiguity. "When in doubt, get out," is their motto.