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

To: shust who wrote (13431)	3/3/1998 3:38:00 PM
From: Czechsinthemail	Read Replies (1) \| Respond to of 95453

I think we're seeing money pour into drilling and service companies as a less risky play on rising oil prices in the future than major or independent oil companies. Though it has been discussed to death on this thread, it looks like more of the investment community may be coming around to the idea that drilling companies can make money even if oil prices are relatively low, while earnings for the major oil companies are likely to be seriously lower. That provides ample justification for moving money from the oil companies to drillers and service companies. But I think there is a lot of optimism being priced in around an OPEC agreement. If it looks like it isn't going to happen, oil prices will likely drop further. If oil prices drop more, oil-related companies are likely to go with them. I still don't think we will get down to the earlier lows, but some selloff is definitely possible. good luck, Baird