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Gold/Mining/Energy : Canadian Oil & Gas Companies -- Ignore unavailable to you. Want to Upgrade?

To: Doug who wrote (4474)	1/13/1998 5:07:00 PM
From: Kerm Yerman	Read Replies (1) \| Respond to of 24927

Doug / Oil Statistics The resulting single chart reflecting years of comparison between oil prices and the oil and gas producers index would be very interesting to see. For all of you reading this message that have contact with reseasrch institutions, see if you can acquire such information to discuss here. If one has access to a charting service, this would be an interesting chart to generate. Use the "oil&gas producers index" over that of the "oil&gas composite index." Would appreciate some feedback on any results. Doug, back to your question. Why the steep decline this time around. In my opinion, it can be concluded with two words, MARKET FEAR. We have witnessed the longest and strongest bull market in history. The market is now at a stage where it is very sensitive to outside influences, such as reported earnings, Asian Flu, inflation, interest rates and etc. Any disappointments or discouraging news result in serious share declines. Everyone feels we have reached or are very close to the top in this bull market. This makes investors, and institutions as well, very edgy. Looking at the oil & gas sector, we have temporary black clouds overhanging - all which I have mentioned in the past few days and weeks. The perception and short term outlook for the industry is not healthy. However, the fundamentals are still in place which present a favorable outlook over the longer term. It's a matter of time when the weight of the fundamentals overpower current perceptions. The important sector investment criteria we should all keep in mind is to buy shares in quality companies when they are cheap or very reasonable. Of course, we want to invest into a sector that is favorable for the longer term. Let's face it, 6 months ago we looked at (or didn't even bother with) shares of the senior oils and felt they were to expensive to invest into. Many opted to invest into the junior oils looking for better return on investment. Then there was the speculators who invested into the micro oil and gas companies, looking for the higher return. Regardless of the type investment made six months ago, we have all been punished. But the point I want to make is HEADLINE STUFF -- you don't have to take risks today. The average investor can now take advantage of the temporary unpopular oil and gas sector -- buying into quality companies at attractive prices which present a better than average return on investment over the longer term. When will people be able to do this -- at times like this.