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

To: marc chatman who wrote (12306)	2/20/1998 10:01:00 PM
From: Czechsinthemail	Read Replies (1) \| Respond to of 95453

from Jim Jubak at Microsoft Investor: investor.msn.com Bad news on drilling budgets from of oil companies such as Apache (APA) and Royal Dutch Shell (RD) have stalled the recovery in oil-drilling and -service stocks. With oil below $17 a barrel, production companies are trimming new exploration and delaying orders. The heaviest pressure seems to be falling on land-based drillers -- with deep-water drilling rigs in extremely tight supply, production companies seem hesitant to pass their turn when getting back in the game could require a lengthy wait on the sidelines. The market, however, doesn't seem to be discriminating between sectors. Price-to-earnings multiples on land-drilling stocks are down about 23% since February 1997; offshore-drilling P/Es are down 31%. I don't see a catalyst to these drilling stocks around until the second half of 1998. But I'm still holding onto shares of Jubak's Pick Rowan Co. (RDC). At a price-to-earnings ratio of 15.5 on the last 12 months' earnings, the stock is cheap and I still like the long-term growth story for the oil-drilling stocks.