Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: bw who wrote (7513)	1/10/1998 8:42:00 PM
From: The Perfect Hedge	Read Replies (2) \| Respond to of 95453

This from the MF.It makes sense to me.I'm morphing into a bear as I type: >>I know you are very savvy investor, but please be careful with the oil services stocks. Even though you and I know that earnings for oil services stocks are not necessarily correlated with the price of oil, most of the world does not see it that way....and in the stock market -- perception dictates reality (stock prices). FWIW, I think the sector is headed lower as the price of oil continues to plummet due to OPEC quota increases/cheating, the return of Iraqi/Iranian production, a warm winter, and decreased Asian demand. IMHO, these stocks will not rebound any time soon. After the oil sector crash of the 80's, people are just not willing to risk being caught in the same trap again. I think people invest in oil services stocks for the earnings growth they see coming 2 to 4 quarters out, and right now people aren't seeing such a bright future. This quarter's earnings may be spectacular, but I think the runup for this quarter happened last summer. Great earnings this quarter for an oil services stock are not the same as great earnings for a technology stock, because the sector just isn't perceived to have the same infinite growth potential as technology. Therefore, investors probably won't react much at all to good news. Just MHO. Best of luck to everyone. P.S. -- Note that this post was written by a former oil services Perma-Bull. Talk about a change of sentiment.<<

To: bw who wrote (7513)	1/10/1998 11:51:00 PM
From: John Carpenter	Read Replies (2) \| Respond to of 95453

Bob Rose(DO's CEO) was on CNBC a few months ago. He said, "This is just the beginning." Meanwhile, DO insiders sold very large proportions of their holdings almost simultaneously. When DO was at $65, Chairman Larry Tisch instituted a $1B convertible bond offering that would dilute DO common by 7%. I think that the guys at DO in particular don't give a shit about the average shareholder. To say that "this is just the beginning, business is really picking up" and then to dump your shares at the same time is a blatant way of putting personal interest ahead of shareholders. Believe me, I didn't expect them to tell me when they would dump their shares. I just don't like people who say one thing and do the opposite.