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

To: SJS who wrote (16104)	3/23/1998 12:03:00 PM
From: marc chatman	Respond to of 95453

Here's an interesting call. Downgrade of BHI: Baker Hughes Inc. (BHI) 41 15/16 -9/16: Prudential Securities downgrades oil and gas equipment and services concern from "buy" to "hold".....

To: SJS who wrote (16104)	3/23/1998 12:07:00 PM
From: Czechsinthemail	Read Replies (2) \| Respond to of 95453

With oil prices restrengthened, I think the optimum places to be among the drilling stocks may be shifting. It is possible that the land drillers will show the best appreciation, but I think they are dicier than the offshore drillers. Among the offshore drillers, the balance of power may be shifting back toward the shallow drillers with shorter contract terms. They have the attractive combination of lower PE's and shorter contract terms. With rig utilization at 100%, these drillers will once again be showing rising dayrates, and the impact of rising dayrates will show up faster than for companies more heavily involved in deepwater drilling w/longer contract terms. I think the best bets may be with the jackup drillers such as ESV, MDCO, and possibly SDC. I've been buying more ESV today. Baird