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

To: Bazmataz who wrote (11102)	2/9/1998 11:09:00 AM
From: Czechsinthemail	Read Replies (1) \| Respond to of 95453

from Briefing.com: TRANSOCEAN OFFSHORE INC (RIG) 43 15/16 +1 1/4. Shares of oilfiled drilling/services stocks are doing well across-the-board this morning, lifted by the rosy outlook issued by group leader Transocean Offshore. Along with reporting 4th qtr net that was 2 cents ahead of Street's $0.44 estimate, the company helped to lift investor spirits by issuing a very rosy forecast on the trend in dayrates: "Based on current discussions with customers concerning future fleet availability, we anticipate continued upward pressure on rig dayrates." Two weeks ago, RIG's comments would have ignited a rally in its own shares and sparked a run in the remainder of the group. But with many oilfield services/drilling stocks up more than 25% over just the past week, investors are looking both ways before rushing in. In fact, as soon as Dow started to sink into negative territory this morning, daytraders and short-term investors started to head for the exit, which pulled these stocks off their intraday highs. So what's next for the drillers? Recent history suggests that there will be some profit-taking in this group over the near-term, due largely to the still relatively weak price of crude. Moreover, if the U.S. pulls back from its hardline position with Iraq, the recent rebound in the price of the commodity may quickly evaporate. Hence, it would probably be prudent to let these stocks settle a bit before committing new capital to the group.