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

To: Broken_Clock who wrote (8693)	1/18/1998 7:48:00 PM
From: The Perfect Hedge	Read Replies (1) \| Respond to of 95453

All: from Right line-JUST A SNIPPET: >>According to an article Friday, James K. Wicklund, Managing Director, Energy Research at Dain Rauscher said that "The Asian crisis will have no impact on oilfield service companies but will have some effect on E&P companies due to lower near-term prices. Oil companies do not predicate their capital budgets based on estimates of future oil prices or demand growth. They base them on the known decline rate of their current production base and the need to grow value by increasing net production volumes. . . After the seasonal drop in oilfield service stocks at the end of November, a number of factors including over-production by OPEC, reduced demand due to US weather patterns and the slowdown of Asian demand, dropped commodity prices and forced oilfield service stocks to continue their decline. At this point, all of the drop has been psychological since earnings estimates and activity forecasts remain unchanged. The psychology identifies crude oil prices as the barometer. While the level of oilfield service activity and commodity prices experienced a de-coupling of correlation several years ago, prices are still the sentiment indicator many are using today. Since 1987, the oil price on average has bottomed in February. Once the commodity price quits going down and/or winter ends, the stocks will bottom and move up."<< Lots of other stuff was in the report by Rightline but I don't want to push my luck with those guys;they're really generous to offer the free 2 week trial. The other stuff is glowing and says we might see a pullback after this week but probably not anything like we've seen.They think the worst is behind us and these stocks MIGHT be poised to rock! C'mon Big Dave get back in the EVI options with me! GD