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

To: The Perfect Hedge who wrote (11344)	2/11/1998 5:38:00 PM
From: Thean	Read Replies (3) \| Respond to of 95453

Glen, OSX is now fixated on the crude price. With the fear of having prolonged suppression in the crude price, fund managers are not going to bottom fish here until they are convinced that the future e&p budget by the oil companies are not going to be trimmed. While people may be perplexed over why the enthusiasm in the deepwater drillers in the presence is still low despite the fact that their earnings in the next 2 years are favorably locked up, I find that quite reasonable. People are investing based on the future growth rate and right now this sector does not have a convincing argument for that. However, my best reason is that the mo-money does not want to come near us. They came to the fabs for a while but have left too. When will they like us again? Who knows, it is the herd mentality. When people find out Soros are buying the drillers, then you bet everybody will like us. It happened before, and I don't have reason to believe they will not happen again. As to TA, I need to look at the chart tonight to say for sure. As of yesterday, the offshore drillers continued to fall due to hitting the upper BB and got bounced. The land drillers's two bigger laggards, NBR and UTI, showed dead cat bounce off their lower BB's while other drillers such as PTEN and BDI caught up with the slump. NBR's bounce today is upgrade related and it could just be a one day wonder. There will be plenty of people wanting to sell into strength.