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

To: Thean who wrote (15628)	3/20/1998 7:02:00 AM
From: RGinPG	Respond to of 95453

<TA> I'm hoping the trend of the BBands will turn upward, like it did for RIG and MDCO back in late February / early March. Then maybe it will ride the upper band for a while. FLC and CDG have been suffering lower lows and lower highs. I figure they have to join the part eventually with higher lows and higher highs like most of the rest of the drillers.

To: Thean who wrote (15628)	3/20/1998 11:12:00 AM
From: Czechsinthemail	Read Replies (1) \| Respond to of 95453

Thean, I agree with you that ESV looks good at this point. Yesterday's weakness was likely linked to the comments by SSB's Mark Urness who revised his estimates downward from $2.95 to $2.65--that's about in line with consensus estimates. Getting a momentary negative sentiment while sentiment is improving for the sector makes for an excellent buying opportunity. If the rally is predicated on the assumption that OPEC will come up with a deal that improves crude prices, suddenly all the drillers are back into more clearly perceived capacity constraints. Those with relatively shorter contract terms such as the land drillers, platform and jackup offshore drillers should have a relative advantage with oil prices rising. The reason is that they will be able to pass through rising dayrates more quickly. Though I continue to feel RIG offers the safest and most predictable way of participating given the uncertainties around oil prices and dayrates, I'm looking more toward other companies that have sold off more for additional buying. Baird