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

To: Nancy who wrote (10970)	2/7/1998 11:47:00 PM
From: Thean	Read Replies (2) \| Respond to of 95453

Nancy, your friend has just inherited a huge amount of risk short term by going long on NBR. Obviously the flip side of taking on more risk is better reward. Your friend bets that NBR will hold support (very near its closing price on Friday) and if successfully tested will rebound strongly. By counting on that scenario, your friend also bets on NBR outperforming other drillers because it has not participated in any rally yet. In a more rational market this would have been fine. In a momentum driven market, who knows? We know NBR is a big land driller and we have heard stories about how they refused to lower price to get jobs. That may hurt them short term but that also indicates to me they are less concerned with establishing long term relationship with their customers, unlike PDS. Anyway, the fact that they are in the out of favored group (land driller) will handicap their short term price rise. I doubt your friend is investing in NBR for long term growth. Therefore I would encourage your friend to make sure an exit strategy is in place in case the expectation does not work out. Time is money. On most TA indicators they are oversold. The key is to see if they can hold their support in the next day or two. I would place a sell stop below this key support, my 2 cents.