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

To: chuck weir who wrote (14062)	3/7/1998 9:09:00 AM
From: chuck weir	Respond to of 95453

Funds dipping into the oil patch.... Fountain Square Mid-Cap Dipping Into Oil Fund, Up 5% This Year, Favors Global, Varco International Date: 3/9/98 Author: Leo Fasciocco Portfolio manager Steve Folker has been dipping his Fountain Square Mid-Cap Fund into the oil patch lately. ''We try not to predict where the price of a commodity like oil is going,'' Folker said. ''However, crude has come down a lot. We think the risk is very low. ''We've been buying Global Marine and Varco International. Oil service stocks look attractive to us because they will show good earnings growth,'' he added. Oil service stocks fell sharply the past four months due to a decline in the price of crude from $21 a barrel in November to about $16. Many stocks in the group fell 25% to 50%. However, the sector did perk up last month with the surprise announcement that Halliburton Co. will buy Dresser Industries Inc. for $7.7 billion. Several oil service stocks rose in sympathy. Global has climbed to 24 and Varco to 26. The fund bought Global in the low-to-mid-20s and Varco in the low 20s, Folker said. Both are leaders in their oil service niche. The stocks could be takeover candidates, but that would be ''frosting on the cake.'' The stocks were bought mainly for their growth prospects and attractive valuations. Fountain Square has held a hot hand lately. The fund is up 5% this year. It's up 36% for the past 12 months, ranking it among the top-10 growth funds in the country. Last year, it rose 33%, about the same as the S&P 500. IBD gives the fund a B grade for its 36-month total return of 97%.