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

To: marc chatman who wrote (16107)	3/23/1998 12:39:00 PM
From: Czechsinthemail	Respond to of 95453

marc, I'm not sure about the land drillers. I think they continue to be more dependent on the budgets of independent E&P companies that may not be up to increasing their drilling expenditures. Eventually, if oil prices continue to strengthen the money will be there, but they are a bigger question mark for me than the offshore companies. You may be right about CDG, but I've felt a bit more reticent about it not just because of its land exposure, but also its emphasis on turnkey operations. What I like about ESV is that it has been a recent laggard amid concerns of lower oil prices. Consequently it has lower PE, bigger decline from its highs, and has recently had some downward revisions in earnings. Now I think there is a good chance that it will outperform, since ESV should be getting more dramatic upward revisions for earnings going forward than other drillers. I think there is a good chance that many/most of the offshore drillers will be moving back toward their highs by the next earnings announcements. Upward revisions at that time should propel the stocks further. Baird