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: Thean who wrote (10780)	2/5/1998 10:25:00 PM
From: Broken_Clock	Read Replies (1) \| Respond to of 95453

Thean,<TA> The webmistress is very friendly. The OSX "shooting star" candle is very disturbing.SLB has formed a new downtrend line with todays back off selling.Hal did the same.Theoverall market is looking for direction and really stalled after Monday.I agree that traders will not hold over the weekend.OSX failed to hold 107-8. Dave

To: Thean who wrote (10780)	2/6/1998 12:05:00 AM
From: Czechsinthemail	Read Replies (1) \| Respond to of 95453

Thean, I concur with your tentativeness around predicting from here. I think the short term for drillers and oilfield stocks is very hard to call. There seems to be a bearish predilection in the crude oil market balanced by concerns over Iraq. I think it could tip either way depending on whether people think we're going to bomb Iraq or find some kind of negotiated settlement. Because drillers and service companies have been so heavily influenced by oil prices, I think a certain amount of caution is warranted around predicting either way. I think the safest way to play it, is to be concentrated in the offshore drillers--the heavier the concentration in deepwater drilling the better. Because the long term is so attractive, I don't think you want to be out of these stocks. This is particularly true when you look at how deeply discounted and undervalued they are compared with virtually any other sector. With the overall market at or near all-time highs, this sector remains way below its highs. At the same time, earnings have been strong throughout the sector. Projections going forward are generally very positive with few downward revisions of earnings. The land drillers seem more dicey to me. They may rocket if crude prices strengthen significantly, but they may drop further if crude prices fall. The uncertainty around whether dayrates will fall or rigs get stacked is likely to weigh on these stocks so long as the threat of lower crude prices looms. good luck,