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

To: Thean who wrote (13003)	2/26/1998 5:25:00 PM
From: SJS	Read Replies (1) \| Respond to of 95453

Off-topic: Page R1: Yahoo up 511% in one year, so says WSJ today. #1 pick. So guess what? They put it up almost 6 1/2 today (about 10.5%) just for good measure. Page R6: Be diciplined abou expectation vs. reality. Right! See page R1 and Yahoo's appreciation. Geesh! It should be happening here....

To: Thean who wrote (13003)	2/26/1998 5:27:00 PM
From: Jack Be Quick	Read Replies (1) \| Respond to of 95453

Thean, nice wrap up, thanks.<EOM>

To: Thean who wrote (13003)	2/26/1998 5:29:00 PM
From: bw	Read Replies (1) \| Respond to of 95453

Hi All...Things definitely looking better, but agree that caution vs. exuberance is the watchword...Made some nice trades and back into cash. Check out this post from the Harken thread [& his bio]: exchange2000.com "This oil price could be very detrimental to the service companies if it stays down much longer. Drilling has already slowed down here locally."

To: Thean who wrote (13003)	2/26/1998 5:39:00 PM
From: Czechsinthemail	Read Replies (1) \| Respond to of 95453

Thean, Although I have no clear sense whether the drilling stocks will continue strong tomorrow or not, I think your caution is well-advised. The news I've been able to find seems a mixed lot. Crude prices were down slightly, products prices up slightly. The weekly oil stocks according to the American Petroleum Institute were up 1.86 million, but the Department of Energy had them up 2.9 million barrels. Refineries were running at 88.7% of capacity compared with 89.9% in the previous week. Esso Singapore announced they had returned a 230,000 barrel/day refinery to near capacity production compared with 80-85% of capacity in Jan and early Feb. Kuwait announced they would be expanding their production capacity from the current 2.2 million barrels a day to 2.5 million/day by 2000 and 3 million/day by 2005. Meanwhile, it isn't clear whether the OPEC meeting scheduled for mid-March will be a full-ministerial meeting or simply the regularly scheduled ministerial committee meeting. And UN Chief Inspector Butler said that the proposed agreement with Iraq would strengthen rather than undermine inspection efforts. From a long-term perspective, you can say the drilling stocks are undervalued and simply hang on waiting for the market to return them to favor. Since I think they are fundamentally undervalued, it is hard to justify further price drops, but they can and do happen, making stocks that are undervalued even more undervalued. From a short-term perspective, there may be more weakness in store, particularly if crude prices drop from here. Perhaps we've had a sea change and the drilling stocks have suddenly come into vogue again, but I think it's too early to tell. I would take a slightly different view on the relationship of E&P budgets to driller performance. I don't think it is necessary for the budgets to be increased to improve the lot of many of the drillers because I expect the projects to be reprioritized favoring ultradeep and natural gas drilling. The companies most active in those segments may see continued strong demand even if it drops off somewhat for others such as land-based oil drillers. Baird